Lummis urges Democrats to back CLARITY Act now

On the Senate floor, Sen. Cynthia Lummis urged Senate Democrats to back the CLARITY Act, saying Democratic input shaped the bill and their votes are needed to establish a federal regulatory framework for digital assets.

The CLARITY Act would define categories of digital assets, clarify the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission, and set minimum standards for disclosure and anti-money-laundering compliance. Sponsors say the measure aims to reduce a patchwork of state rules and provide more certainty for investors and firms.

Lummis said negotiators from both parties spent months on the text and that provisions proposed by Democratic senators appear in the bill, including measures intended to strengthen consumer safeguards and improve coordination among regulators. She urged colleagues to support the package to move the policy forward.

Some Senate Democrats have raised concerns about the scope of agency authority and whether the bill would treat certain tokens differently. Progressive lawmakers and consumer advocates have pushed for tougher investor protections and limits on how large financial firms can participate in crypto markets.

Backers want a prompt vote. Passage requires a majority in the evenly divided Senate, making Democratic support decisive. Industry groups representing exchanges, asset managers and blockchain firms have publicly supported the bill, saying clearer rules would encourage investment and bring more firms into regulated frameworks.

Consumer and investor-rights groups said they will judge the legislation by its final text and by whether it strengthens oversight and disclosures. Lummis warned that delay would prolong regulatory uncertainty, increase compliance costs and leave disputes over agency jurisdiction unresolved. ‘You helped shape this bill,’ she told colleagues, calling on Democrats to vote in favor.