Clarity Act Delays Could Push Crypto Firms Out Of America

Senator Cynthia Lummis (@SenLummis) is sounding the alarm: every day the US Senate fails to act on the Digital Asset Market Clarity Act is another day crypto firms consider building elsewhere.

A Bill Stuck in the Senate

The bill, formally named the Digital Asset Market Clarity Act (H.R. 3633), passed the House in July 2025 with strong bipartisan support. It provides the foundation for a comprehensive federal regulatory framework for cryptoasset markets, outlining responsibilities for consumer protection, preventing market manipulation, and delineating the roles of the CFTC and the SEC.

The US Senate has been considering draft versions of the CLARITY Act since its House vote, but the bill has run into procedural and political snags preventing it from facing a vote in the Senate Banking Committee and the Senate Agriculture Committee. Over 100 proposed amendments proved so contentious that Senator Scott opted to postpone the vote rather than risk failure. Points of friction include disagreements over stablecoin yield rules and how far DeFi developers should fall within regulatory reach.

Senator Lummis, chair of the Senate Banking Subcommittee on Digital Assets, has called it Congress's top priority, stating: "Every corner of the industry is operating under legal uncertainty that Congress has the power to fix." With the Senate Banking Committee eyeing the week of May 11 for markup, time is tightening ahead of the August recess.

A Global Race for Crypto Capital

Proponents argue that continued delay risks capital flight, stifled innovation, and lost US leadership in digital assets. Industry groups have pressed Senate leaders to move, warning that each delay adds regulatory uncertainty and pushes activity offshore.

The concern is not hypothetical. In the EU, the implementation of MiCA and the regulatory clarity it provides have given traditional financial institutions more confidence to move ahead with crypto and tokenization projects under a clearer, harmonized rulebook. Rival jurisdictions are actively positioning themselves to attract the talent and capital that US inaction leaves on the table.

Pressure has been mounting on key sponsors to move the legislation forward, as the Act risks long-term delay or failure if it cannot progress ahead of the November 2026 US midterm elections. Missing important deadlines could delay crypto legislation for the foreseeable future, or even push it to 2030, according to Senator Lummis.

The stakes extend beyond the industry. Passing the CLARITY Act has been a fundamental pillar of President Trump's strategy for establishing US leadership in digital asset innovation. Whether Congress can deliver before the legislative window closes remains the defining question for US crypto policy in 2026.

Sources:
The Crypto Times: Senator Lummis Declares CLARITY Act "The Priority"
Bitcoin Magazine: Senator Lummis Puts Congress On The Clock
Elliptic: CLARITY Act Senate Delay Creates Uncertainty