CLARITY Act nears vote — Lummis: 'We think we've got it'

Wyoming Senator Cynthia Lummis announced a breakthrough in negotiations over the CLARITY Act — the key crypto market structure bill in the United States. Speaking at the Digital Chamber's DC Blockchain Summit on March 18, Lummis stated: "We think we've got it," and predicted a vote in the Senate Banking Committee as early as April 2026.

What is the CLARITY Act

The Digital Asset Market Clarity Act is a comprehensive bill that establishes the regulatory framework for the U.S. crypto industry. The House of Representatives passed it in July 2025 with a bipartisan 294-to-134 vote. The bill then moved to the Senate, where it stalled due to disagreements between the crypto industry and the banking lobby.

The core objective of the CLARITY Act is to delineate SEC and CFTC authority over digital assets. The bill divides crypto assets into three categories: digital commodities, investment contract assets, and permitted payment stablecoins. The CFTC would gain exclusive jurisdiction over digital commodity spot markets, while the SEC retains oversight of investment contract assets.

Breakthrough in negotiations: stablecoins and DeFi

The main sticking point was stablecoin yield. Banks pushed to prohibit crypto platforms from offering rewards resembling bank deposits. The compromise reached is based on terminology: platforms will be barred from using words like "yield," "APR," or any comparisons with deposit interest rates. In essence, this restricts marketing language rather than banning the rewards themselves.

The second contentious issue was decentralized finance regulation. According to Lummis, negotiators have "put the DeFi issue to bed" by clarifying how P2P transactions and protocols should be regulated. The bill protects software developers and focuses regulation on centralized intermediaries rather than the code itself.

Three categories of digital assets

Bitcoin and other decentralized cryptocurrencies will fall under the "digital commodities" category regulated by the CFTC. This means a less stringent regulatory regime compared to the SEC, which is positive for the market. Last week, the SEC and CFTC already classified 16 crypto assets as digital commodities.

Tokens meeting the criteria of investment contracts will remain under SEC oversight. Meanwhile, stablecoins like USDT will receive a separate "permitted payment stablecoins" category with its own reserve and transparency requirements.

Adoption timeline

The Banking Committee vote is scheduled after the Senate's Easter recess — approximately during the weeks of April 13 and April 20. Senator Bernie Moreno warned that if the bill does not pass by May, crypto regulation will be delayed indefinitely. The November 2026 midterm elections could shift the balance of power in the Senate, making the window of opportunity limited.

What this means for the market

Passing the CLARITY Act would mark a watershed moment for the crypto industry. A clear delineation of SEC and CFTC authority would eliminate the regulatory uncertainty that has held back institutional investors. Projects built on Ethereum and other blockchains would gain clear rules for developing DeFi protocols without the threat of sudden lawsuits from regulators.

However, not all issues are resolved. Senator Kirsten Gillibrand insists on including ethics provisions that would prohibit senior government officials from personally profiting from cryptocurrencies. This issue could become the final hurdle before the committee vote.

Conclusion

The CLARITY Act is moving toward adoption faster than ever before. The compromise on stablecoins and DeFi removes the key points of contention, while support from both sides of Congress provides grounds for optimism. The coming weeks will reveal whether the U.S. crypto market can finally obtain the clear legal framework the industry has been awaiting for years.