Lummis Blasts Democrats for Holding Up Clarity Act Before Recess

Republican Senator Cynthia Lummis took the Senate floor Wednesday to criticize Democratic colleagues for delaying the Clarity Act, a bill that would set federal rules for crypto markets. The legislation passed the House last year with bipartisan support. In the Senate, it has stalled for months.

Lummis said she spent 11 months negotiating, making concessions, and rewriting the text. Major financial institutions and crypto companies back the bill, she noted. A group of Democrats still finds the current version insufficient, particularly on transparency and accountability. They have not specified all their objections, Lummis said, making the blockade harder to resolve.

One of the main sticking points is stablecoin yields. The banking lobby opposes provisions that would allow interest-bearing stablecoins, arguing they could pull deposits from traditional banks. Some Democrats appear sympathetic to that argument, according to people familiar with the discussions.

An updated version of the bill released last week includes a new prohibition on officials and their families promoting cryptocurrencies, a direct response to earlier ethics concerns. That change has not been enough to win over skeptical Democrats. Other adjustments remain unclear.

Republicans are pushing for a vote before Congress leaves for August recess. The schedule is tight. Without bipartisan support, the bill cannot pass the Senate.

Lummis has held Bitcoin since 2013 and helped draft the Bitcoin Act, a separate proposal to create a strategic bitcoin reserve. Her involvement in the Clarity Act is part of a long-running effort to establish clear rules for the industry. She is one of the few U.S. senators with long-term personal exposure to the asset, earning her the nickname “Bitcoin Senator.”

Regulatory uncertainty has real costs. U.S. crypto firms operate without knowing which rules apply. The SEC has pursued enforcement actions against several exchanges and lenders, while the Commodity Futures Trading Commission has claimed jurisdiction over certain digital asset derivatives. The Clarity Act would assign primary oversight to the CFTC and define when a token is a security versus a commodity.

If the bill fails to pass before recess, the earliest the Senate could take it up again is September. The delay would extend the period of uncertainty for companies deciding whether to base operations in the United States. Several crypto firms have already moved headquarters overseas, citing the lack of clear federal law.

The odds of passage before recess have fallen, according to political betting markets. The CLARITY Act odds recently sank to 27% after Senate delays. CLARITY Act odds sink to 27% after Senate delays crypto bill