- Lummis said the Senate is close to finalizing the CLARITY Act after months of difficult negotiations.
- Lawmakers continue resolving DeFi, ethics, and illicit finance issues before a final Senate vote.
- Regulators urged Congress to pass the CLARITY Act as analysts lowered its approval odds.
Senator Cynthia Lummis said lawmakers are close to finalizing the Digital Asset Market CLARITY Act after months of negotiations, with the Senate aiming to release the bill’s final text and move it forward this month. Speaking to Fox Business, Lummis said negotiators have resolved several major disagreements, although the effort missed its original July 4 target.
The Wyoming Republican said lawmakers have worked through difficult policy issues since last Labor Day. While most of the major disputes have been settled, she noted that a few outstanding issues still need to be resolved before the Senate can hold a final vote ahead of its August recess.
Lummis Details Months of Negotiations
Lummis said negotiations on the CLARITY Act have been long and challenging, noting that lawmakers have been working on the bill since last Labor Day.
She said changes made to the GENIUS Act became the biggest obstacle during the talks, as banks pushed for revisions that sent negotiators back to the table. According to Lummis, Senators Bill Hagerty and Thom Tillis helped broker a compromise with the banking industry.
She added that lawmakers are still working through issues involving decentralized finance, illicit finance rules, and ethics provisions. Once those discussions are complete, the Senate plans to release the updated bill for a final review before moving it to the next stage.
Lummis Defends the Bill Against Critics
Lummis also pushed back against criticism of the bill from Senator Elizabeth Warren, arguing in a post on X that the legislation would strengthen, not weaken, sanctions enforcement.
She said the proposal would expand the Treasury Department’s authority to crack down on the misuse of digital assets and rejected claims that it would make it easier to evade sanctions.
Senate Faces Growing Pressure
CFTC Chair Michael Selig also called on Congress to pass the CLARITY Act before lawmakers leave for the August recess, warning that further delays could leave regulators to fill the gap. “We’re so close. We have to get this done,” he said in a separate Fox Business interview.
Selig said the current patchwork of state regulations creates uncertainty for businesses and investors. He also pointed to ongoing disagreements over ethics provisions as a key reason bipartisan negotiations have slowed.
Analysts have also become more cautious about the bill’s outlook. Galaxy Research lowered its estimate of the bill’s chances of passing in 2026 to 50% from 60%, citing Senate scheduling challenges. TD Cowen said it remains uncertain whether Congress can approve the legislation before the November midterm elections.
Related: Sony Wins Conditional OCC Approval for U.S. Trust Charter Ahead of Stablecoin Plans
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
