Senator Lummis Says “CLARITY Act Will Make the U.S. the CRYPTO CAPITAL OF THE WORLD

Senator Lummis backs the CLARITY Act as the Senate plans an April review to define crypto rules and boost US digital asset leadership.

Senator Cynthia Lummis said the CLARITY Act could position the United States as a global leader in digital assets. She stressed that clear rules are needed for growth.

Lawmakers are preparing to review the bill in April, which could shape how crypto markets are regulated across the country.

Senate Plans April Review of CLARITY Act

Senator Cynthia Lummis said the Senate Banking Committee will review the CLARITY Act after the Easter recess.

She told an audience that the markup is expected in April. The process will allow lawmakers to amend and vote on the bill.

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The legislation aims to define rules for digital assets in the United States. It will clarify whether assets fall under securities or commodities laws.

It will also set disclosure standards for firms operating in the market. Lummis said, “We’re going to mark it up in April.” She added that lawmakers believe they are close to agreement. 

The committee had faced delays earlier this year after a planned session was canceled. The House passed its version of the bill last year with bipartisan support.

The Senate Agriculture Committee also approved a version earlier this year. A combined version must be created before a full Senate vote.

Key Issues Include Stablecoin Yield and Regulation

One major issue has been whether stablecoin platforms can offer rewards to users. The GENIUS Act restricts issuers from paying direct interest.

However, third-party platforms may still offer certain rewards. Banks have raised concerns about such programs.

They argue that rewards could reduce deposits held in traditional banks. Crypto firms have said limits could slow market growth and reduce user benefits.

Lummis said negotiations have focused heavily on this topic. She noted that a compromise may restrict language that resembles banking products.

“Anything that sounds like banking product terminology will not appear,” she said. Talks have involved lawmakers and the White House.

Reports indicate that final details are being reviewed. Coinbase and other firms have also taken part in discussions on the issue.

Related Reading: Senator Lummis Urges Banks to Embrace Stablecoins and Digital Assets

Broader Debate Covers DeFi and Oversight

The bill also addresses decentralized finance, known as DeFi. Some lawmakers have raised concerns about risks linked to illicit finance.

These concerns have been part of ongoing discussions during the drafting process. Lummis said issues related to DeFi have been resolved in recent talks.

She expressed confidence that the bill can move forward.  Other lawmakers have also signaled progress toward agreement.

The legislation would divide oversight between the SEC and the CFTC. It would define when a digital asset qualifies as a security or a commodity.

This distinction has been unclear for many firms. Before becoming law, the bill must pass both chambers of Congress.

It must also be signed by the president. Lawmakers will address ethics concerns and other matters during later stages.

Lummis said, “The CLARITY Act paves the way to make the U.S. the digital asset capital of the world.” She added that clear rules are needed for the country to lead in financial innovation.

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