US Senator Cynthia Lummis says the Senate could vote on the CLARITY Act before lawmakers begin their August recess, with the chamber potentially remaining in session beyond Friday to complete work on the legislation.
Lummis, a Republican from Wyoming and chair of the Senate digital assets panel, said a vote would force every senator to make their position public. She was speaking to Fox Business on 5 August, when the Senate had been expected to start its recess at the end of the week.
“There are other bills in addition to the CLARITY Act that we need to take votes on before we leave for the August recess. CLARITY is one of those bills,” Lummis said.
The proposed legislation would establish separate federal oversight for different parts of the cryptocurrency market. It would give the Commodity Futures Trading Commission (CFTC) responsibility for qualifying digital commodities, while the U.S. Securities and Exchange Commission (SEC) would continue to oversee digital assets classified as securities.
Supporters believe the division of authority would give exchanges, developers, investors and law-enforcement agencies a more consistent set of rules. Lummis has argued that greater certainty would help keep cryptocurrency companies, investment and technological innovation in the United States.
Negotiations have continued after 11 months of discussions. Lummis said the process had produced more than 300 pages of changes requested by Democrats, although several important issues remained unresolved.
Those included provisions concerning the CFTC, law enforcement and ethics rules for senior federal officials. Senate Banking Committee Democratic staff identified five outstanding areas on 5 August: securities protections, illicit finance, national security, presidential conflicts of interest and related ethics concerns.
A bipartisan counterproposal on ethics was sent to President Donald Trump following discussions led by US Senators Thom Tillis, a Republican from North Carolina, and Ruben Gallego, a Democrat from Arizona. The proposal would allow state attorneys general to enforce federal cryptocurrency ethics rules.
Lummis said Trump had already accepted restrictions broader than those placed on previous presidents, but Democrats were seeking additional safeguards. The counterproposal remained with the president as senators prepared for a possible vote.
The legislation has received support from senior figures at both major financial regulators. CFTC Chairman Michael S. Selig backed congressional action after the Senate Agriculture Committee advanced separate digital asset market structure legislation on 29 January.
Selig’s support for clearer rules was presented as part of wider efforts to make the United States a leading market for financial technology. SEC Chairman Paul Atkins has also expressed optimism that Congress will pass the CLARITY Act.
Lummis has previously warned that the current regulatory system is failing companies, consumers and law-enforcement agencies. Her latest push also highlights issues including custody requirements, disclosure obligations and the scope of federal supervision.
“We’ve tried to find a way to allow innovation to occur while still having a clear regulatory framework that this industry can comply with. And they want to comply. They want to be in the United States. Let’s let them by passing the CLARITY Act,” Lummis said.
The approaching recess leaves a limited period for supporters to secure the 60 votes generally required to advance major legislation in the Senate. Republicans hold 53 seats, meaning Democratic backing would be necessary.
A Senate vote would place every lawmaker on record before negotiations with the House over the final version of the legislation. The technology trade group representing more than 1,300 companies has also renewed its call for Senate approval of the CLARITY Act.
