The push for the Digital Asset Market Clarity Act, or CLARITY Act, has picked up significant speed. Lawmakers are now racing to establish a federal framework for digital asset markets. Supporters warn that the United States risks losing its influence if it does not act quickly, as other countries move ahead with their own crypto regulations.
The act has drawn support from a wide range of figures. Senate Banking Committee Chairman Tim Scott, Senator Cynthia Lummis, Senator Thom Tillis, Representative French Hill, Representative Glenn Thompson, and Representative Tom Emmer are among its leading advocates. Industry groups, consumer organizations, national security veterans, and President Donald Trump have also backed the effort.
Lawmakers Warn of Global Stakes
Senator Lummis has been particularly vocal. In a post on June 5, she warned that failing to pass the CLARITY Act would hand the future of digital finance to jurisdictions that do not share American values. She argued the bill does not pick winners but creates a level field where the best ideas can win. She has repeatedly said delays allow other countries to set the rules the U.S. should be writing.
Chairman Scott said the bill puts consumers first, combats illicit finance, and keeps the future of finance in the United States. Representative Hill stressed it prioritizes consumer protection and innovation. Representative Thompson called it landmark legislation that will protect consumers and unleash entrepreneurship.
The CLARITY Act would create a federal market structure for digital assets. It divides oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It sets rules for token classification, disclosures, custody, exchanges, brokers, and consumer protections.
Senate Fight Deepens
The House passed the bill in July 2025. The Senate Banking Committee advanced it in a 15-9 bipartisan vote on May 14, 2026. The bill still needs full Senate approval before lawmakers reconcile differences with the House version and send it to the president.
Supporters see it as a way to reduce regulatory uncertainty. Critics push for stronger safeguards on conflicts of interest, illicit finance, and broader market risks.
Support Broadens
Support extends beyond crypto-focused groups. A Harrisx poll found 52% support after voters reviewed the proposal. 70% said the U.S. should already have passed crypto legislation. Over 160 national security veterans backed it. AARP, a leading advocacy group for older Americans, endorsed Section 205, citing crypto kiosk scams and losses over $389 million.
Crypto advocacy group Stand With Crypto urged senators to support final passage. 28,000 Americans signed a petition for Senate action. A16z crypto warned the U.S. risks falling behind Europe’s Markets in Crypto-Assets framework. Ripple has also backed the legislation.
Lummis cautioned that the next window for digital asset legislation after this Congress is likely 2030. She noted that until then, developers remain exposed with no legal protections, and law enforcement lacks tools to hold bad actors accountable. The Senate fight remains contested. Senator Elizabeth Warren opposed the bill during committee markup and offered 44 amendments, none of which passed. Trump has urged Congress to send the act to his desk. Lummis also argued that failed exchanges can force customers into creditor proceedings instead of guaranteed asset access.
