Senator Lummis' Warning: CLARITY Act Passage Delayed by Years Without Urgent Senate Action

US Senator Cynthia Lummis has sounded the alarm on the potential delay of the CLARITY Act, a comprehensive crypto regulation bill. According to Lummis, if the Senate fails to act before the 2026 election cycle, the bill's passage could be pushed back up to four years.

The warning comes as negotiations over the bill continue in Washington, with key disagreements centered on regulatory jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The Treasury Secretary Scott Bessent has also emphasized the need for swift action, arguing that clear regulations are essential to attracting and retaining crypto investors in the US.

The major dispute over the CLARITY Act is its provisions on stablecoin rewards. Traditional financial institutions claim that offering yield on stablecoins will drain bank deposits and hurt lending capacity, but a recent report from the White House Council of Economic Advisers suggests this alarm may be exaggerated.