Senator Cynthia Lummis (R-WY) warns that the Digital Asset Market Clarity Act (CLARITY Act) could potentially be put on ice for four years if the Senate does not take action before the 2026 midterm elections.
Her message comes a day after Finance Minister Scott Bessent published an opinion piece in which he emphasized the same urgency.
Why the urgency is important now
Lummis has been the most prominent advocate for the CLARITY Act in the Senate since its inception. She is the chair of the Senate committee on digital assets and has repeatedly emphasized that the legislation is necessary to prevent cryptocurrency companies from leaving the country due to regulatory uncertainty.
This is our last chance to pass the Clarity Act until at least 2030. We cannot afford to give up the financial future of America,” Lummis said in a message.
The warning becomes more serious now that Lummis announced in December 2025 that she does not seek a second term.
She indicated that a new term of six years is too physically and mentally demanding.
Her current term ends in January 2027, making this legislative round crucial for her career in the Senate.
A joint approach in Washington and the obstacles
Lummis is not alone. Her comments came after U.S. Treasury Secretary Scott Bessent and others from President Donald Trump's inner circle indicated that there is now a need for action.
Bessent warned that unclear regulations have caused crypto development to move to countries with clear rules, such as Abu Dhabi and Singapore.
Despite broad support from the administration, there are still various hurdles. The main disagreement over stablecoin yields has been approached thanks to the Tillis-Alsobrooks compromise of March 20.
With that agreement, passive rewards on stablecoin balances are banned, but activity-based rewards are allowed.
However, the law still needs to go through five steps before it reaches the president, namely:
A discussion in the Banking Committee,
A threshold of 60 votes in the Senate,
Consultation with the version of the House of Representatives, which was adopted in July 2025,
Consultation with the version of the Senate Agriculture Committee (which introduced its own proposal in January 2026),
Signature of President Trump
Democratic senators continue to push for ethical rules that prohibit government employees from personally profiting from crypto activities.
The White House has so far refused to comply with this demand.
The Senate resumes on April 13 after the Easter recess. Republican senators from the Banking Committee plan to start discussions at the end of April.
If no action is taken during this period, analysts warn that the law may not come up again until at least 2027, as election campaigns will dominate the rest of the agenda.
On prediction markets, traders currently estimate the chance that Trump will sign the CLARITY Act before the end of 2026 at 56%.