Lummis: CLARITY Act would end prosecution risk for coders

Sen. Cynthia Lummis urged colleagues to pass the Digital Asset Market CLARITY Act, saying the bill would remove the threat of prosecution for U.S. software developers who publish code after the Senate Banking Committee advanced the measure in a 15-9 vote on May 14, 2026. Lummis presented the bill as a response to legal uncertainty facing engineers who build decentralized finance tools, wallets and other blockchain services.

The CLARITY Act would split regulatory authority over digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The bill sets criteria for when a token should be treated as a security or as a commodity. It also includes language to prevent developers and infrastructure providers that do not take custody of customer funds from being labeled money transmitters, a designation that triggers licensing requirements and expanded reporting duties.

The House approved its version of the legislation in July 2025 by a 294-134 margin. After the Senate Banking Committee vote, an amended bill was placed on the Senate calendar, making it eligible for floor consideration. The measure must secure 60 votes in the full Senate to overcome a filibuster. If it clears the Senate and differences with the House are reconciled, the bill would require the president’s signature to become law.

Support for the CLARITY Act has come from technology firms and national security figures. More than 1,200 companies represented by the Consumer Technology Association urged Senate leaders to advance the bill. A separate letter from 160 former national security, intelligence and law enforcement officials recommended passage. Ripple Chief Executive Brad Garlinghouse publicly backed the legislation, calling it an opportunity for U.S. regulatory clarity.

Opposition was vocal during committee markup. Senator Elizabeth Warren proposed 44 amendments that did not pass and warned the framework could pose risks to the broader economy. Other critics argued that the bill’s definitions and protection language could weaken investor safeguards or create regulatory gaps.

Supporters cited international developments and competitive pressure as reasons for urgency, pointing to the European Union’s Markets in Crypto-Assets regime as an example of clearer rules that could attract developers and jobs abroad. Lummis has warned that delaying action could push comprehensive U.S. crypto rules out to 2030 and lead firms and talent to relocate.

The legislation also addresses treatment of customer assets if a digital-asset exchange fails. Lummis and backers contend that absent statutory protections, customers holding assets at a failing exchange could be treated as unsecured creditors rather than having direct rights to their holdings, a distinction that can affect recoveries in bankruptcy and enforcement proceedings.

“Software developers should not need an army of lawyers to know if their code is legal. The CLARITY Act ends that absurdity,” Lummis wrote in a statement. Developers and startups are watching the Senate calendar; the final vote will determine whether publishing blockchain-related software in the United States is governed by a statutory framework or remains a legal gray area.