Lummis Warns Democrats: Back CLARITY Act or Risk US Crypto Leadership

Senator Cynthia Lummis is optimistic about the CLARITY Act's chances of passing in the Senate, citing strong bipartisan support. The bill, which aims to create clear rules for digital assets and protect consumers, has already passed the Senate Banking Committee with a 15-9 vote.

Lummis emphasized that ethics concerns will not be the reason for the bill's potential failure, but rather Democrats' refusal to support what she calls a bipartisan plan for consumer protection. She warned that if the bill fails, it will be because Democrats didn't join Republicans in embracing a bill that protected consumers and cemented America's leadership in digital assets.

The Senate is set to vote on September 15 on a cloture motion to move forward with H.R. 3633, which requires at least 60 votes for passage. Lummis noted that if the motion fails, the bill will likely not advance during the current session, putting pressure on lawmakers to reach a deal.

Lummis highlighted the importance of creating clear rules for digital assets, pointing to the collapse of FTX as an example of how existing law lacks clear guidelines. She emphasized that under CLARITY, digital commodities would be treated as customer property in bankruptcy, ensuring consumers are protected and made whole.