Lummis Warns of Regulatory Backlash: CLARITY Act Must Pass This Session

Senator Cynthia Lummis is pushing for the passage of the CLARITY Act in the US Senate, which aims to clarify regulatory ambiguity around digital assets. The bill has already cleared the House with a comfortable bipartisan majority and is now sitting in the Senate with a ticking clock.

Lummis argues that America's historical leadership in technological revolutions should not be compromised by letting regulatory uncertainty chase crypto innovation overseas. She believes that passing the CLARITY Act would be an 'unforced error of historic proportions' if it doesn't happen soon.

The bill draws explicit lines between digital commodities and securities, giving jurisdiction to either the CFTC or the SEC. It also includes over 16 provisions targeting illicit finance, including BSA and AML requirements, as well as considerations for DeFi developers and validators.

Lummis warns that if the CLARITY Act doesn't pass this session, meaningful digital asset legislation might not materialize until 2030. She sees passing crypto regulation as a 'commitment, not a concession' to the industry's lobbying efforts.