Senator Cynthia Lummis is pressing lawmakers to vote on the Clarity Act before the Senate breaks for recess, warning that Democratic resistance could tank the bipartisan crypto regulation effort. Speaking to Fox Business on Wednesday, the Republican said she had been working late into the night with Democratic counterparts to salvage the bill, but complained that some still refuse to budge on key demands.
"I've bent over backwards for 11 months to give them as much as we can possibly give them to regulate this industry," Lummis said. "We're going to vote on it. If it dies, it's going to be because the Democrats kill it."
The standoff centers on ethics provisions tied to the White House. An updated version introduced in July bans government officials and their families from issuing or promoting crypto, a direct response to Democratic criticism of President Trump's family crypto ventures. Lummis noted that the administration has already agreed to ethics safeguards "no president has ever agreed to" in history, yet Democrats continue pressing for more concessions.
Banking Lobby and Stablecoin Yield
The Clarity Act has been deadlocked for most of 2026, partly because banks lobbied against provisions allowing crypto companies to let clients earn yield on stablecoins. Despite those concerns, major institutions like Fidelity and BlackRock have backed the latest version, along with law enforcement groups. A faction of Democrats argued in July that the bill still needs work before moving forward.
Lummis expects a floor vote to happen before lawmakers leave for the break, likely extending into the weekend. The outcome hinges on whether Democrats can accept the ethics compromises already on the table or continue holding out for additional changes that could derail the entire package.
This article is for informational purposes only and does not constitute financial or investment advice.
