Lummis Presses Holdouts on CLARITY Act, Citing Growing Support and Regulatory Clarity

Senator Cynthia Lummis has called out Democratic holdouts on the CLARITY Act, pushing them to reveal their objections. In a Senate floor speech, Lummis asked her colleagues to point to 'the section' that they are against, sparking debate over the bill.

The CLARITY Act aims to provide regulatory clarity for digital assets and has undergone significant changes since its initial introduction. The bill now includes 33 separate edits to Title One, three brand new titles, and 23 additional sections aimed at illicit finance. Lummis highlighted the inclusion of ethics provisions, including a ban on covered individuals issuing or sponsoring digital assets, with civil penalties for violators.

Lummis also noted that the National Fraternal Order of Police has endorsed the bill, citing its provisions addressing concerns about crypto crime and anti-money laundering safeguards. This development is seen as evidence that the bill's illicit-finance and anti-money-laundering provisions have addressed critics' concerns in good faith.

Despite growing momentum for the bill, Senator Lummis acknowledged that some Democrats continue to withhold support, with retail sentiment around Circle (CRCL) remaining bearish. The CLARITY Act would provide regulatory certainty to issuers like Circle and boost institutional confidence in USDC.