Lummis Says Senate to Move Forward with Crypto Legislation in July

Senator Cynthia Lummis (R-Wyo.) announced that the Senate is preparing to move forward with cryptocurrency market structure legislation in July, specifically the CLARITY Act. This comes as a response to criticism from JPMorgan Chase CEO Jamie Dimon, who argued that such proposals could allow crypto companies to offer rewards resembling interest-bearing bank deposits without proper regulatory protections.

Lummis rejected Dimon's characterization and stated that the CLARITY Act allows rewards programs but prohibits benefits tied directly to account balances in a way that resembles traditional bank interest. She emphasized that lawmakers have revised Section 301 of the bill to address concerns from banks about stablecoin issuers offering products that function like deposit accounts.

The legislation is still under discussion, with negotiators working through provisions involving decentralized finance, illicit finance prevention, and ethics language. Lummis noted that the bill now includes multiple anti-money laundering protections.