Clarity Act to Halt Offshore Migration of US Developers

Lummis Warns of a Builder Exodus

Senator Cynthia Lummis (@SenLummis) is pushing for the immediate passage of the Digital Asset Market Clarity Act, arguing that the United States is actively driving its own developers offshore. Speaking publicly on the legislation, the Wyoming Republican warned that domestic regulatory ambiguity is forcing "American builders" to relocate to jurisdictions like Singapore and Switzerland in search of legal certainty.

The argument is not new, but the urgency is. Lummis has said that "every day we delay the Clarity Act is a day American companies consider building their future somewhere else." Speaking to FOX Business, she warned that without a clear framework, digital asset innovation will migrate to Dubai or Singapore, and that those markets lack the consumer protections the US is developing.

The bill itself, formally known as H.R. 3633 or the Digital Asset Market Clarity Act of 2025, cleared the Senate Banking Committee on May 14 in a 15-9 bipartisan vote. It had previously passed the House in July 2025 with a 294-134 margin. The legislation now awaits a full Senate floor vote.

What the Clarity Act Would Do

At its core, the Clarity Act seeks to resolve a long-running jurisdictional dispute between the SEC and the CFTC over who regulates the crypto industry. Under the bill, digital commodities such as Bitcoin would fall under CFTC oversight, while tokens structured more like traditional securities would remain under SEC jurisdiction. The division is designed to give exchanges, developers, and token issuers a clear statutory framework to build against, rather than waiting for enforcement actions to define the rules.

For Lummis, the stakes are personal as well as legislative. She announced she would not seek reelection in 2026, giving her a limited window to see the bill through. More than 100 crypto firms, including Coinbase and Ripple, have publicly called for swift passage. If the bill stalls past this congressional session, Lummis has warned the next realistic window may not open until closer to 2030.

The legislation still needs to survive a full Senate vote, reconciliation with the House version, and a presidential signature before it becomes law.

Sources:
Crypto Briefing: Sen. Cynthia Lummis advocates for CLARITY Act
Crypto News: CLARITY Act will end crypto regulatory ambiguity, says Senator Lummis
Latham & Watkins: US Crypto Policy Tracker