Sen. Cynthia Lummis stated that the Clarity Act is the largest crypto law in U.S. history, providing clear rules for the crypto industry after years of uncertainty.
The Wyoming Republican said she and her staff work every day to garner support from both parties because the bill could significantly impact the U.S. financial system.
Lummis works with both parties to get support from Senate Democrats for the bill
Senator Lummis said her staff meets with Democrats almost every day to discuss the bill, as lawmakers who don’t understand or agree on the text before the committee vote may cause problems in the full Senate.
She explained that the process is very different from the GENIUS Act because it covers most crypto assets, not just stablecoins, so lawmakers from both parties needed to agree on every part fully.
Executives from major crypto companies also met with lawmakers multiple times in recent weeks, but disagreements over timing and leaked documents regarding the regulation of DeFi slowed down the talks. Senators also disliked how some lobbyists criticized the Democratic draft instead of working quietly to find solutions.
But despite this feedback, Lummis says the bill is moving in the right direction because her team is working on building understanding and trust between Republicans and Democrats. She wants the Banking Committee to vote on the bill before the end of the year so that the full Senate can begin debates early next year.
The Clarity Act could change how the U.S. regulates digital assets
The Clarity Act will provide guidance to crypto companies on their responsibilities and limitations, enabling them to operate safely and protect both investors and consumers.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will serve as supervisors under the new ACT. Senator Lummis even praised SEC Chair Paul Atkins for using flexible programs so that crypto companies continue providing services even when the bill is still in progress.
The bill also addresses the ongoing tension between traditional banks and crypto companies, as community banks have long complained that crypto exchanges offer rewards that they cannot match. The Senator informed the banks that the Clarity Act would enable them to provide custody and management services for digital assets legally, allowing them to compete fairly with crypto firms.
Lummis also talked about the recent Custodia Bank case and said she was very disappointed that a federal appeals court ruled that the Wyoming-based bank could not access the Federal Reserve’s full payment system. She, however, noted that the Fed made a significant step forward when it created a “skinny master account” for special-purpose banks, as it demonstrates that they are beginning to recognize the importance of digital assets in the financial system.
On related development, Lummis posted on X reiterating her comments that the Strategic Bitcoin Reserve is the only solution to offset the United States’ national debt.
She noted, “I truly believe the Strategic Bitcoin Reserve is the only solution to offset our national debt. I applaud @POTUS and his administration for embracing the SBR, and I look forward to getting it done.”
Highlighting the federal government’s staggering $38 trillion debt, Lummis argues that Bitcoin’s scarcity, immutability, and storability render it an optimal long-term asset for the nation’s resilience. She recently stated that, according to the best available modeling, if Bitcoin is held for two decades, America can reduce its national debt by half.
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Source: https://www.cryptopolitan.com/lummis-calls-clarity-act-the-biggest-in-u-s/
