Lummis says CLARITY Act can reshape U.S. crypto finance

The bill seeks to define how digital assets should be treated under U.S. law. It also aims to reduce the long-running dispute between regulators over which agency should oversee crypto trading activity.

Senate timing becomes key

The CLARITY Act has already passed the House and cleared the Senate Banking Committee. It now needs a full Senate vote before it can move closer to becoming law.

Timing remains one of the main challenges. If the Senate does not act before the August recess, the bill’s path could move into 2027. That makes July an important month for digital asset policy in Washington.

Lummis has also opened a final review window for updated bill text. A recent report said the revised version was expected around July 4, giving lawmakers and industry groups one more chance to review changes before a possible floor push.

The bill still faces debate over stablecoin yield products, ethics rules and decentralized finance oversight. Those issues matter because Senate leaders need enough support to move the bill through a divided chamber.

SEC and CFTC roles would change

The CLARITY Act would create a clearer split between the Securities and Exchange Commission and the Commodity Futures Trading Commission. A plain-language explainer said the bill would define when a token is treated as a security and when it is treated as a commodity.

Under the bill, the SEC would keep oversight of investment contract assets. The CFTC would take a larger role in digital commodity spot markets, including some exchange activity.

The bill would also set rules for trading platforms, brokers and crypto exchanges. These rules include separating customer assets from company funds, a measure meant to reduce risks seen in past exchange failures.

Supporters say the bill could replace enforcement-led policy with a written rulebook. Critics continue to question whether the text gives enough protection to users and enough detail for decentralized finance.

Fraud funding remains part of the bill

The bill also includes enforcement funding. A separate report said the CLARITY Act would set aside $150 million for crypto fraud investigations.

Lummis said the money would help agencies “track down scammers and bad actors in the digital asset space.” The provision may help lawmakers who want stronger fraud controls alongside market rules.

The bill would also bring some digital asset firms under Bank Secrecy Act duties. That could increase reporting standards for platforms that handle customer assets and transactions.

For now, the CLARITY Act remains close to a Senate test but has not become law. Lummis is pressing lawmakers to move forward, while crypto firms, banks and policy groups wait for the final text and the next vote.