Senator Cynthia Lummis (R-WY) is actively working to garner bipartisan support for the Clarity Act, calling it the largest crypto law in U.S. history that will finally provide clear rules for the digital asset industry.
Key Points on the Clarity Act
- Bipartisan Effort: Lummis and her staff are meeting with Democrats almost daily to build understanding and trust, aiming for a vote in the Banking Committee before the end of the year and a full Senate debate early next year.
- Broad Scope: Unlike the prior GENIUS Act, the Clarity Act covers most crypto assets, requiring full agreement from both parties on all parts of the text.
- Regulatory Guidance: The bill is designed to give crypto companies clear guidance on their responsibilities and limitations, helping them operate safely and protect consumers.
- Supervisors: The SEC and CFTC will serve as the primary supervisors, with Lummis praising SEC Chair Paul Atkins for using flexible programs in the interim.
- Addressing Traditional Banking: The Act aims to resolve tension between traditional banks and crypto firms by legally enabling community banks to provide custody and management services for digital assets, allowing them to compete with crypto exchanges.
- Challenges: Talks have been slowed by disagreements over timing, leaked documents concerning DeFi regulation, and senators' frustration with lobbyists criticizing Democratic drafts instead of seeking quiet solutions.
- Custodia Bank Case: Lummis expressed disappointment that a federal appeals court denied Custodia Bank access to the Federal Reserve's full payment system but sees the Fed's creation of a "skinny master account" for special-purpose banks as a positive step toward recognizing digital assets.
Advocating for a Strategic Bitcoin Reserve
In a related development, Senator Lummis reiterated her stance that a Strategic Bitcoin Reserve (SBR) is the only solution to offset the United States’ current $38 trillion national debt. She believes Bitcoin's scarcity, immutability, and storability make it the optimal long-term asset. Lummis asserts that the best modeling suggests holding Bitcoin for two decades could reduce the national debt by half.
November 2025, Cryptoniteuae