Digital Asset Clarity Act Stalls Amid Leadership Transition

Lawmakers and regulators who helped shape U.S. crypto policy are preparing to leave Washington as the Digital Asset Market Clarity Act faces a leadership transition.

Senators Thom Tillis, R-N.C., and Cynthia Lummis, R-Wyo., will not seek re-election at the end of the year. Lummis chairs the Senate Banking Committee's digital-assets subcommittee and has led work on the bill.

The changes follow the Senate's failure to advance the measure. Lawmakers on the Senate Banking and Agriculture committees continue to negotiate, while stakeholders are privately preparing plans for the 120th Congress.

Stakeholders have unresolved issues with decentralized finance, tokenization, Commodity Futures Trading Commission authority, stablecoin yield, banking access, enforcement risks, and ethics provisions in the bill. Some advocates are looking to a lame-duck session after the midterm elections, while others expect financial regulators to fill gaps through new rules.

The Senate failed to advance a key procedural vote on the Digital Asset Market Clarity Act, putting the legislation's immediate path in doubt.