Lummis warns Clarity Act delay could push crypto rules to 2030

Sen. Cynthia Lummis warned that failure to pass the Clarity Act during the current Congress could push comprehensive federal rules for digital assets into 2030, leaving software developers, exchange customers and law enforcement without clear legal protections.

Lummis posted the warning on social media between May 24 and May 30, arguing that missing the current legislative window would force market participants to operate without a federal framework for years. She wrote: “The next window for digital asset legislation after this Congress is likely 2030. Until then, developers remain exposed with no legal protections, and law enforcement remains without the tools to hold bad actors accountable. The Clarity Act solves both.”

The Clarity Act aims to define digital assets and set a regulatory regime covering exchange operations and customer asset ownership. The House approved the Digital Asset Market Clarity Act in July 2025 by a 294-134 vote and sent it to the Senate. On May 14, 2026, the Senate Banking Committee advanced an amended version in a bipartisan 15-9 vote. The measure still needs approval by the full Senate, where it must reach 60 votes to overcome a filibuster, then clearance of any differences with the House before heading to the president.

Lummis highlighted bankruptcy protections as a core issue. In a post she wrote: “Without the Clarity Act, if a digital asset exchange goes bankrupt, customers have no guaranteed right to their own assets. They join a creditor line with other Wall Street firms and expensive lawyers and hope for the best. This is a consumer protection failure Congress must fix.” The clause would aim to clarify whether customers’ assets are treated as property of the customer or estate assets in insolvency proceedings.

She also warned that developers could face prosecution for publishing code and that innovators would lack statutory guidance for compliance, while prosecutors would not have stronger tools to pursue fraud and theft.

Lummis cited international competition, saying China is developing its own rules for digital assets and urging Congress to act to set U.S. market standards. She appealed to President Donald Trump’s stated support for a durable digital asset framework and urged lawmakers to send him the bipartisan bill.

Opponents of the bill have raised concerns about certain provisions and the bill’s regulatory boundaries. The Clarity Act must still clear partisan and procedural hurdles before becoming law.