CLARITY Act News: Lummis Slams Democrats As Crypto Tax Reform Gains Urgency

Published by

Anjali Belgaumkar

October 23, 2026

US Capitol Dome graphics asking about CLARITY Act vote.

The Blockchain Association has urged Congress to overhaul US crypto tax rules while the CLARITY Act remains stuck in the Senate. The industry group said current tax requirements for digital assets are hard to follow and need clearer guidance. Its proposals include a tax exemption for small transactions with network fees of $10 or less, stronger privacy protections for taxpayers and applying wash sale rules to crypto. That last change would stop investors from selling assets at a loss and quickly buying them back to lower their tax bill. The push comes after Democrats voted against a motion to proceed on the CLARITY Act. Senator Cynthia Lummis said the bill raises civil penalties for digital asset violations, a change she said Democrats had requested.

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