Key facts
- Senator Cynthia Lummis supports the CLARITY Act to establish nationwide digital asset rules.
- The bill aims to replicate Wyoming's successful digital asset legal framework at the federal level.
Senator Cynthia Lummis is advocating for the CLARITY Act, which would extend Wyoming's digital asset regulatory framework nationwide. The bill aims to clarify federal rules for crypto companies and define roles for the SEC and CFTC.
The CLARITY Act aims to provide much-needed regulatory certainty for the U.S. digital asset industry, potentially fostering innovation and investment by establishing clear federal guidelines and agency responsibilities.
Senator Cynthia Lummis has stated that the CLARITY Act could implement Wyoming's digital asset regulatory approach across the United States, providing clearer federal rules for cryptocurrency companies. Wyoming has developed a comprehensive legal framework for digital assets since 2018, including special purpose depository institutions and legal definitions for blockchain property.
The CLARITY Act is designed to establish federal regulations for the digital asset market and delineate the responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The proposed legislation categorizes digital assets to determine which agency holds jurisdiction.
Further provisions within the bill mandate disclosure requirements for specific digital assets and offer protections for non-custodial software developers, ensuring they are not automatically subject to the same regulations as centralized financial intermediaries if they do not control customer funds. It also addresses how customer assets are handled during bankruptcy proceedings, classifying digital assets held for customers as property separate from the company's assets in Chapter 7 cases.
The CLARITY Act previously passed the House of Representatives with a 294-134 vote in July 2025. The focus now shifts to the Senate, which is scheduled to hold a cloture vote on September 15. SEC Chair Paul Atkins expressed optimism about the bill's progression through the Senate and its potential to be signed into law by President Donald Trump. However, the congressional calendar, including upcoming recess periods, could influence the timeline for final passage.