U.S. Senator Cynthia Lummis (R-WY) has issued her strongest call yet for immediate Senate action on the Digital Asset Market Clarity Act, stressing that the legislation is no longer a future goal but Congress’s top priority to end years of regulatory uncertainty for the crypto industry.
In a post on X, the Senator stated, “Every corner of the industry is operating under legal uncertainty that Congress has the power to fix. The Senate needs to act.”
The statement comes days after a bipartisan compromise on stablecoin yield language was finalized between Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD), which cleared a major roadblock and triggered a sharp rally in crypto-linked stocks, with Circle (CRCL) surging nearly 20% and Coinbase (COIN) up over 6%.
As The Crypto Times reported, the deal bans passive interest-like rewards on stablecoins while permitting activity-based incentives.
Fresh Banking Pushback Emerges
However, the compromise is already facing internal fractures within the banking sector. According to journalist Eleanor Terrett, a divide is forming: big banks with consumer-facing arms are taking strong issue with the language, while institutions without such arms appear more comfortable.
Some community banks are signaling support, though the Independent Community Bankers of America (ICBA) continues to voice concerns. The core grievance, per conversations with larger banks, is that the drafted language is “too narrowly” written and still leaves room for crypto firms to circumvent the restrictions. In their view, it is “not a true compromise” because it fails to eliminate yield entirely—it merely shifts how it is offered.
Banking trade groups are now planning to ramp up outreach to Senate Banking Committee members beyond just the lead negotiators, ahead of the anticipated markup. The lead negotiators had suggested in a joint statement the night before that the issue was closed.
Building on Months of Progress
Lummis, who chairs the Senate Banking Subcommittee on Digital Assets, first pledged a May markup during her keynote at the Bitcoin 2026 Conference in Las Vegas. “We are going to markup the Clarity Act in May. We are going to get it to the finish line,” she told the crowd, noting that stablecoin provisions and broader market structure language were “almost 99% sorted out.”
The bill—formally named the Digital Asset Market Clarity Act (H.R. 3633)—passed the House in July 2025 with strong bipartisan support. It aims to draw a clear line between digital assets regulated as securities by the SEC and those treated as commodities under CFTC oversight, while creating operational standards for exchanges, custodians, and DeFi participants. Crypto Times has tracked the legislation’s journey extensively, including Lummis’s earlier warnings that this Congress may be the last realistic window for passage before 2030, as well as recent market enthusiasm following the stablecoin compromise.
Industry leaders have grown increasingly vocal. Ripple CEO Brad Garlinghouse recently signaled a “big shift” in optimism around the bill’s prospects, while prediction markets have lifted the odds of the Clarity Act becoming law in 2026 to around 60-64%.
What’s at Stake and What’s Next
With the Senate Banking Committee now eyeing the week of May 11 for markup, time is tightening ahead of the August recess. Proponents argue that continued delay risks capital flight, stifled innovation, and lost U.S. leadership in digital assets—concerns echoed across the industry in response to Lummis’s latest post. Lummis has long framed the Clarity Act as essential for DeFi growth, offering safe harbors for developers, validators, and node operators while limiting regulatory overreach.
The bill also pairs with the GENIUS Act (already law) to create a comprehensive U.S. crypto framework. The Senate’s next moves will be closely watched. A successful markup would send the bill to the full chamber, where 60 votes would be needed for passage—setting the stage for reconciliation with the House version and a potential presidential signature later this year. Crypto markets remain on edge but hopeful, with Bitcoin recently breaking above $80,000 amid the positive regulatory signals.
Also Read: Clarity Act on Fast Track? Senator Moreno Sets July 4 Deadline
