Lummis: CLARITY Act Failure Could Delay Crypto Rules Until 2030

U.S. Senator Cynthia Lummis has warned that if the CLARITY Act fails to pass Congress, it could push back the implementation of digital asset market structure legislation until 2030.

The bill aims to clarify America's cryptocurrency regulatory framework by setting boundaries between commodities and securities and defining responsibilities for the SEC and CFTC. However, unresolved provisions continue to hinder progress, with Democrats expressing concerns over ethics-related provisions.

Lummis released a revised draft of the CLARITY Act on July 22, combining work from the Senate Banking and Agriculture committees. The updated text includes provisions covering fraud, anti-money-laundering measures, law enforcement, illicit finance, stablecoin balances, consumer protections, vertical integration, and ethics.

The outcome of the bill's passage is crucial for crypto companies, exchanges, investors, and regulators seeking predictable federal rules. If it fails this Congress, lawmakers would need to restart the process in a future session, potentially extending uncertainty.