Senator Cynthia Lummis has called on Senate Democrats to support the final version of the Digital Asset Market Clarity Act, warning that failing to do so would push cryptocurrency companies to relocate abroad.
In remarks on the bill presented Sunday night, Lummis emphasized the bipartisan nature of the legislation, noting its origins as the Responsible Financial Innovation Act in 2022 and its development as a joint effort with Senator Kirsten Gillibrand.
The bill has garnered support from both financial institutions, including Goldman Sachs and Fidelity, and law enforcement groups such as the National Fraternal Order of Police and the National Sheriffs' Association.
Compromise Language Added
To address Democratic concerns, the final draft includes new ethics provisions that ban covered individuals from sponsoring digital assets and require them to divest holdings or place them in blind trusts.
Lummis argued that these measures directly address Democratic concerns about presidential cryptocurrency investments. "If my Democratic colleagues are truly concerned about the president's crypto investments, then passing this bill — not blocking it — is the way to address that," she stated.
Potential Consequences of Rejection
Lummis warned that rejecting the legislation would not eliminate the cryptocurrency industry but would instead relocate it to more favorable jurisdictions such as London, Singapore, and Abu Dhabi. She cautioned that such a shift would cost the United States regulatory oversight and the ability to prevent incidents similar to the FTX collapse, while also potentially creating opportunities for foreign adversaries to exploit cryptocurrency loopholes for money laundering.
A Senate vote on the CLARITY Act is scheduled for Tuesday evening. Despite 126 Democrat-proposed changes to the final draft, the bill's passage remains uncertain.
