Lummis Warns Senate: Pass CLARITY Act Now or Risk Crypto Exodus

Senator Cynthia Lummis is urging lawmakers to advance the CLARITY Act, warning that the upcoming Senate vote could represent Congress’ best chance to establish comprehensive U.S. crypto market structure rules.

In a recent op-ed, the Wyoming Republican described the legislation as a bipartisan compromise developed through 12 months of negotiations. Lummis warned that continued regulatory uncertainty could push crypto companies away from the United States toward jurisdictions such as London, Singapore and Abu Dhabi.

According to Lummis, the absence of a clear federal framework creates uncertainty over regulatory jurisdiction, complicating consumer protection and business compliance. She argued that losing digital asset companies overseas could also cost the U.S. jobs, tax revenue and influence over crypto-related enforcement.

The senator pointed to her work with Democratic Sen. Kirsten Gillibrand on the Responsible Financial Innovation Act, first introduced in 2022 and again in 2023, as groundwork for the CLARITY Act. She also highlighted the bill's 15-9 bipartisan approval by the Senate Banking Committee in May, noting that Title I contains 33 bipartisan revisions.

The latest CLARITY Act includes tighter definitions intended to prevent companies from avoiding securities laws, alongside an SEC certification process with a 90-day regulatory review period. It also strengthens anti-evasion measures and includes more than 20 provisions addressing sanctions compliance and money laundering.

Other measures would expand oversight of decentralized finance and offshore exchanges involved in illicit activity. The legislation would provide $150 million in additional funding for the Financial Crimes Enforcement Network and strengthen consumer safeguards, including protections involving digital asset ATMs.

Lummis also highlighted ethics provisions that would prevent the president, vice president, members of Congress and federal judges from issuing or sponsoring digital assets for profit.

With the Senate cloture vote approaching, Lummis warned that rejecting the CLARITY Act does not guarantee lawmakers will receive another opportunity to pass stronger crypto legislation soon.

She also cited the collapse of exchanges such as FTX as evidence that clearer custody, accountability and consumer protection standards are necessary for the U.S. digital asset industry.