Cynthia Lummis

Senator Cynthia Lummis is urging the Senate to move the CLARITY Act forward as lawmakers get ready for a crucial vote on the crypto market structure bill. The bill, she said, was the result of much negotiation between parties and that the chance may not be coming again.

Lummis Warns Crypto Firms Could Leave US

In a recent op-ed, Lummis warns crypto firms that they risk leaving the United States. Since there’s no specific federal oversight for crypto, Lummis spotlighted uncertainty for businesses in the digital asset space. She said that it is difficult for the regulators to protect consumers because of the lack of clarity over jurisdiction.

The Wyoming Republican contended this could offer an industry a clear set of directions. She also expressed concerns that businesses could relocate if Congress doesn’t take action.

“If Congress doesn’t pass the Clarity Act now, these companies will simply leave the U.S. for London, Singapore or Abu Dhabi,” Lummis wrote.

She said it would be a move that would deprive American taxpayers and companies of jobs and tax revenue. This would also have the potential to limit the scope of U.S. law enforcement in relation to crypto activity.

Lummis cited Sen. Kirsten Gillibrand, D-N.Y., as an example of a bipartisan connection for the bill. The two legislators had previously served on a committee that had previously been studying the Responsible Financial Innovation Act.

That legislation was introduced in 2022 and once more in 2023. Later, it became a basis for the CLARITY Act, Lummis said.

The senator also highlighted the crypto bill’s approval by the Senate Banking Committee with 15-9 bipartisan vote in May. Significant participation by both sides in the committee process was involved, she said.

“Title I alone reflects 33 separate bipartisan edits,” Lummis said.

CLARITY Act Enhances Finance And Consumer Protections

Lummis described a number of provisions which were added during the course of negotiations. These include more stringent definitions, designed to ensure that companies do not evade securities regulations.

The bill would also create an SEC certification process, per the final CLARITY Act draft. A 90 day review period would be given to regulators. New anti-evasion weapons would also provide agencies with more power.

Lummis says new provisions to combat illegal financing were the result of democratic demands. The law has upwards of 20 sections on money laundering and sanctions compliance.

One of the measures would introduce new regulations for decentralized finance platforms. In addition, the CLARITY Act would provide more authority to authorities to go after offshore exchanges that engage in illegal financial activity.

The bill would also allocate $150 million for the Financial Crimes Enforcement Network to be newly funded. Five more sections would enhance consumer protections, such as the protections for digital asset ATMs.

Further, Lummis even highlighted proposed ethics restrictions. The law would prohibit the president, Vice President, members of Congress and federal judges from issuing or sponsoring digital assets for profit, she added.

She also cautioned that a rejection of the CLARITY Act at the Senate cloture vote wouldn’t ensure a more robust proposal in the future.

“A no vote today isn’t a vote for a stronger bill next month or next year,” Lummis wrote. She added “This is the one shot we have to pass meaningful market structure legislation in America.”