U.S. Senator Cynthia Lummis has once again urged Congress to advance the CLARITY Act, which aims to establish a clearer legal framework for the U.S. digital assets market. The key issue now is not the direction of the bill, but whether the Senate can complete its vote before the August recess.
Senate voting time becomes the focus
The bill has passed the House and completed the Senate Banking Committee stage. The next step is a full Senate vote. If it does not advance before the August recess, the legislative process could be delayed until 2027, making July a critical window for cryptocurrency policy in Washington.
Lumis stated that the CLARITY Act is expected to lay the foundation for "21st-century financial services." She recently opened a final review window for the updated bill text. The report noted that the revised version is anticipated to be released in early July for further evaluation by lawmakers and industry groups.
The division of responsibilities between the SEC and CFTC will become clearer.
One of the key provisions of the bill is to redefine the regulatory responsibilities of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding digital assets. The bill aims to clearly specify under what circumstances a token is considered a security and under what circumstances it is considered a commodity.
According to current disclosures, the SEC will continue to regulate assets classified as investment contracts, while the CFTC will assume greater responsibility for spot markets of digital commodities, including certain platform activities. Supporters believe this will shift U.S. regulation away from its long-standing reliance on enforcement cases toward a system of written rules.
Platform compliance and law enforcement funds have been included in the text.
The bill will also establish clearer requirements for trading platforms, brokers, and cryptocurrency exchanges, including the segregation of customer assets from company funds. This arrangement aims to reduce the risks exposed by past exchange failures.
In addition, the bill includes provisions for anti-fraud enforcement funding. Reports note that the text proposes allocating $150 million for investigations into cryptocurrency fraud. Certain digital asset companies may also be brought under the obligations of the Bank Secrecy Act, increasing reporting requirements for customer assets and transaction processing.
However, the bill still faces several points of contention, including stablecoin yield products, ethical guidelines, and the regulation of decentralized finance. These issues will determine whether Senate leadership can secure enough votes to move the bill forward.