It is now or never for the Clarity Act

When was the last time a Wyoming Republican and a New York Democrat agreed on major policy? The Clarity Act is that rare thing: a genuine bipartisan compromise that gives the digital asset industry the regulatory certainty it needs and gives everyday Americans the protections we deserve.

Here’s why it matters: right now, nobody agrees on which government agency is even in charge of regulating crypto. That confusion makes it harder to protect people and pushes crypto companies to set up shop overseas instead of here. This bill fixes that.

After 12 months of negotiations, it’s now or never for this strong, bipartisan compromise.

Addressing this topic shouldn’t be a Republican or Democratic priority — it must be bipartisan. That’s why from Day One, my partner in this journey has been Sen. Kirsten Gillibrand (D-N.Y.). Together we introduced the Responsible Financial Innovation Act in 2022 and again in 2023. That bill then became the foundation for the Clarity Act, which has incorporated nearly every sound bipartisan suggestion presented to us.

That bipartisan groundwork is how we got a 15-9 bipartisan vote out of the Banking Committee in May. Plenty of people told me to move this on Republican votes alone. I refused every time, because I don’t believe that digital assets are a partisan issue.

The results speak for themselves. We have earned support from across the digital asset industry, from legacy financial institutions like Goldman Sachs and Fidelity. Even the National Fraternal Order of Police and the National Sheriffs’ Association , both of whom originally opposed the bill, have dropped their opposition. We listened, built in dozens of illicit finance and anti-money laundering provisions, and that’s what got us there.

Title I alone reflects 33 separate bipartisan edits where Republicans and Democrats played key roles. It contains tighter core definitions so that companies cannot structure around securities law; a mandatory SEC “front door” certification with a 90-day review window instead of 60 and new anti-evasion authority so regulators aren’t boxed in by technicalities.

We built two entirely new titles at Democrats’ request, adding more than 20 new sections on illicit finance: sanctions compliance for decentralized finance platforms, new authority to cut off money laundering through shady offshore exchanges, and $150 million in new Financial Crimes Enforcement Network funding. We also added five new consumer protection sections, including federal safeguards for digital asset ATMs.

Nowhere are the compromises clearer than on the ethics provisions, led by President Trump. When Democrats raised concerns, I took them directly to Trump, and he agreed to the strongest ethics provisions in U.S. history. That includes a first-of-its-kind ban on the president, vice president, every member of Congress, and federal judges issuing or sponsoring digital assets for profit and a commitment to place his own digital assets in a blind trust or divest entirely.

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.

Every senator weighing a no vote should also consider the fallout of not passing market structure. This industry won’t evaporate if this bill fails. A no vote today isn’t a vote for a stronger bill next month or next year. This is the one shot we have to pass meaningful market structure legislation in America.

If Congress doesn’t pass the Clarity Act now, these companies will simply leave the U.S. for London, Singapore or Abu Dhabi. American jobs and tax revenue will go with them, and so will our ability to police any of it. Once exchanges and capital are parked overseas, U.S. law enforcement loses jurisdiction and leverage to protect our people’s interests.

We have already seen what an unregulated version of this industry looks like. When platforms have collapsed, customers spent years fighting through bankruptcy courts for money that was theirs to begin with. Another FTX isn’t just a possibility we’re guarding against — it is, rather, a guaranteed outcome of leaving this industry without custody rules or consequences. And foreign adversaries are not waiting for us to finish deliberating. They are moving money through the exact money laundering gaps this bill closes right now.

It is time for Democrats to put their money where their mouth is and join us in passing the Clarity Act. If a New York Democrat and a Wyoming Republican can get on the same page, then the rest of Congress can too. Let’s pass the Clarity Act now.

Cynthia Lummis, a Republican, is the junior senator from Wyoming and a member of the Senate Banking Committee.