Lummis Warns Failing CLARITY Act Will Send Crypto Industry Abroad

Senator Cynthia Lummis is urging Senate Democrats to rally behind the final version of the Digital Asset Market Clarity Act, also known as CLARITY. The bill aims to add strict ethics rules that would force officials to divest their crypto assets or place them in a blind trust.

Lummis emphasized that failing to pass the bill would result in crypto companies leaving the U.S., taking investments and jobs with them to more crypto-friendly jurisdictions like London, Singapore, or Abu Dhabi. She warned that this would also empower foreign adversaries using crypto loopholes for money laundering purposes.

The CLARITY Act has undergone significant changes since its introduction as the Responsible Financial Innovation Act in 2022. Lummis and Senator Kirsten Gillibrand have been driving forces behind the bill, gathering support from both financial institutions like Goldman Sachs and Fidelity, and law enforcement groups like the National Fraternal Order of Police and the National Sheriffs' Association.

The vote on the CLARITY Act is scheduled for Tuesday evening, after 126 Democrat-pushed changes were made to the final draft. Lummis called on Democrats to 'put their money where their mouth is' and pass the bill, stating that blocking it would not address concerns about President Trump's crypto investments.