Key facts
- Senator Cynthia Lummis warned that failure to pass the CLARITY Act in the current Congress could delay market structure legislation until 2030.
- A critical Senate cloture vote on the CLARITY Act is scheduled for September 15, requiring 60 votes to advance debate.
- The CLARITY Act seeks to define SEC and CFTC jurisdiction over digital assets and establish rules for intermediaries, custody, and customer protection.
- Representative French Hill expressed confidence in the bill's passage before the November midterms, noting bipartisan support in the House.
- The House of Representatives' cancellation of late-September sessions has created a hurdle for the bill's timely passage.
Senator Cynthia Lummis has cautioned that if the U.S. market structure legislation, known as the CLARITY Act, does not pass during the current congressional session, the next viable opportunity for such laws could be delayed until 2030. Lummis expressed concerns that such a delay could negatively impact the country by costing jobs, investment, and tax revenue.
The senator's warning comes ahead of a scheduled Senate cloture vote on September 15, which requires 60 votes to advance debate on the bill. With Republicans holding 53 seats, Democratic and independent support is crucial. Passing cloture would only move the bill to the next stage, not enact it into law.
Further complicating the legislative timeline is the House calendar, with recent reports indicating cancellations of floor time in late September, leaving limited opportunities if the Senate amends the bill. This compressed schedule makes the path from Senate approval to final enactment increasingly challenging.
The CLARITY Act has already overcome significant legislative hurdles, with the House passing its version in July 2025 and the Senate Banking Committee advancing its text in May 2026. Senator Lummis has also promoted a digital asset framework inspired by Wyoming's approach as a potential federal model.
The proposed legislation aims to clarify the jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding digital assets. It would also establish rules for digital-asset intermediaries, custody practices, and customer protection measures. However, lawmakers still face disagreements on issues such as ethics, stablecoin yields, and decentralized finance (DeFi).
One political obstacle has been somewhat alleviated as the National Sheriffs’ Association recently moved from an opposition stance to neutrality, removing a significant objection from law enforcement. While this does not constitute an endorsement, it improves the legislative backdrop. Other lawmakers and industry figures continue to advocate for the bill's passage, including Representative French Hill, who has argued for approval before the midterms, and Ripple CEO Brad Garlinghouse, who has urged Congress to finalize the legislation. Coinbase CEO Brian Armstrong has also expressed support for clearer rules, while cautioning against potential government overreach.
For investors, the distinction between a successful Senate vote and the actual enactment of the CLARITY Act is significant. Prediction markets are already differentiating between these outcomes, with odds on enactment in 2026 serving as an indicator of legislative expectations. A win at the September 15 cloture vote would reduce market uncertainty but would not finalize the regulatory framework. If Congress misses this legislative window, companies may continue to navigate a fragmented landscape of federal and state regulation.