Sen. Lummis: U.S. could lose crypto edge to China if CLARITY fails

Sen. Cynthia Lummis urged lawmakers to approve the Digital Asset Market Clarity Act, warning that failure would cede U.S. leadership in digital assets to countries such as China. She wrote on X: “America built the dollar-dominated financial system that has anchored global stability for a century. The Clarity Act ensures we build the next one. The time to act is now, before Beijing decides it will.”

The CLARITY Act would assign oversight responsibilities across federal agencies and establish rules for market structure, custody and trading in digital assets. The Senate Banking Committee voted to advance the bill in May after months of delay, reviving industry hopes that portions of the legislation could become law during the 2026 session.

Large banks have pushed back against the current draft. JPMorgan CEO Jamie Dimon criticized the bill for allowing some crypto firms to pay interest on customer deposits and for not imposing the same anti-money-laundering and capital requirements that banks face. Dimon argued the banking industry would continue to “fight” the bill and added, “No one is going to bow down to this guy or that company.”

For the measure to become law it must clear both the Senate and the House and be signed by the president. Lummis warned that if the bill is not enacted in 2026, lawmakers may not have another opportunity to pass a similar package until 2030.

Supporters say the bill would provide legal clarity for exchanges, custody providers and decentralized finance platforms. Critics, including representatives of large banks, contend the draft lacks comparable consumer protections and financial-stability safeguards and needs changes to align crypto firms’ obligations with those of traditional banks. Those disagreements have contributed to the legislative impasse.