Senator Lummis: CLARITY Act Won’t Fail Over Ethics, But Democrats Could Kill It

Senator Cynthia Lummis says the CLARITY Act will not fail over ethics concerns. But the bill could instead fail if Democrats refuse to support what she calls a bipartisan plan for consumer protection.

Lummis said Democrats now face a choice: support American innovation and strong consumer protections, or let China take the lead in finance.

Democrats Could Kill the CLARITY Act

The CLARITY Act passed the Senate Banking Committee with strong bipartisan support in a 15-9 vote. Senator Cynthia Lummis said the U.S. must move quickly to create clear rules for digital assets and keep America at the forefront of the industry.

Lummis said the remaining disagreements can still be resolved, but Democrats must be willing to compromise.

Lummis said,

“If this bill fails, it won’t be because of ethics,” “It will be because Democrats didn’t join Republicans in embracing a bipartisan bill that protected consumers, cements America’s leadership in digital assets, and empowered law enforcement to clamp down on illicit finance.”

She added that Democrats are seeking changes that could give future regulators too much power over the crypto industry.

September 15 Vote Needs 60 Senators

The Senate will vote at 2:15 p.m. ET on September 15 on a cloture motion to move forward with H.R. 3633. This is not a final vote on the CLARITY Act. It only decides whether the Senate can begin formal debate.

The motion needs 60 votes, while Republicans hold 53 Senate seats. That means at least seven Democrats or independents would need to support it if all Republicans vote yes.

If the motion fails, the bill is unlikely to advance during the current session, putting more pressure on lawmakers to reach a deal.

What CLARITY Would Change for Crypto

The bill would create clearer rules for digital assets by dividing oversight between the CFTC and SEC.

Lummis also pointed to the collapse of FTX, stating that customers waited years to recover their funds because existing law lacked clear rules for digital assets in bankruptcy. Under CLARITY, digital commodities would be treated as customer property.

Lummis also said lawmakers must protect U.S. consumers by ensuring the crypto industry follows U.S. rules and continues to build and grow in the country.

Thus, she warned that every delay in sending the bill to the president puts that leadership at risk. 

Lummis Warns of a Long Wait Until 2030

Earlier Coinpedia news reported that Lummis has warned that failure could push the next major market structure effort to 2030. She said delaying the bill could cost the U.S. jobs, investment and tax revenue.

“Next week, my colleagues have a choice: they can choose American innovation and strong consumer protections, or cede the future of finance to China.” 

With just one week away from the Senate vote, the fight is now less about whether crypto needs rules and more about whether lawmakers can agree on what those rules should be.