Lummis Warns of Economic Consequences if CLARITY Act Fails this Year

Senator Cynthia Lummis has issued a warning that failing to pass the CLARITY Act by the end of the current Congress could lead to significant economic losses, including job losses, reduced investment, and lower tax revenue. According to Lummis, if the bill is not passed now, the next realistic opportunity for comprehensive U.S. crypto market-structure legislation may not arise until 2030.

The CLARITY Act aims to establish formal definitions for digital assets and divide oversight between regulators based on an asset's classification. If it fails to pass this Congress, the Securities and Exchange Commission (SEC) will continue to apply a case-by-case approach using the Howey test without binding rules or procedural protections for the sector.

Lummis has framed the stakes of passing the CLARITY Act in explicitly economic terms, emphasizing that jobs, investment, and tax revenue are at risk if lawmakers miss this window. Her warning is conditional, projecting a potential delay rather than guaranteeing one.