CLARITY Act Moves Closer to Becoming Law

U.S. Senator Cynthia Lummis has once again urged her colleagues to pass the CLARITY Act, legislation designed to establish a clear regulatory framework for the cryptocurrency market in the United States. According to Lummis, the bill could lay the foundation for the financial services industry of the 21st century.

As the senator stated:

"The CLARITY Act is our generation's contribution to this story. Let's finish the job."

The proposed legislation aims to define clear rules for digital asset markets while ending the long-running debate over which federal agency should oversee cryptocurrency trading.

The bill has already passed the House of Representatives and received approval from the Senate Banking Committee. Its next milestone is a vote before the full Senate. If lawmakers fail to hold the vote before the August recess, further progress could be delayed until 2027, making July a critical month for the bill's future.

Lummis has also launched the final stage of public consultation on the updated version of the legislation. According to earlier reports, the revised text was expected to be released around July 4, giving senators and industry stakeholders one last opportunity to submit feedback before the final vote.

One of the key elements of the CLARITY Act is a clear division of responsibilities between the SEC and the CFTC. The SEC would continue overseeing digital assets classified as investment contracts, while the CFTC would regulate digital commodities, including significant parts of cryptocurrency exchange activity.

The legislation would also introduce new compliance requirements for trading platforms, brokers, and crypto exchanges. Companies would be required to keep customer assets separate from corporate funds, a measure intended to reduce risks similar to those exposed by previous exchange collapses.

In addition, the bill allocates $150 million to strengthen efforts against cryptocurrency-related fraud. Lummis argues that the funding would help enforcement agencies more effectively investigate and prosecute fraud in the digital asset sector.

Some crypto businesses would also become subject to the Bank Secrecy Act, introducing stricter obligations for transaction reporting and the safeguarding of customer funds.

Despite its progress, the CLARITY Act continues to generate debate. Lawmakers are still discussing provisions related to stablecoin-based products, ethical standards, and oversight of decentralized finance (DeFi). The legislation has not yet become law and remains subject to approval by the full U.S. Senate.