Cynthia Lummis Warns China Will Write Crypto Rules If CLARITY Act Fails

Wyoming Senator Cynthia Lummis said the United States will lose its leadership position in crypto to other countries, including China, if US lawmakers fail to pass the Digital Asset Market Clarity Act (CLARITY).

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Lummis argued that passing a comprehensive crypto regulatory framework would “ensure” that other countries “do not write the rules of the next financial era,” and she added in an X post that the Senate Banking Committee voted to advance the CLARITY Act after it stalled for months.

CoinGape

The bill’s timeline is uncertain because it faces opposition from the banking lobby and the looming US midterm elections, and the window to pass it may not come again until 2030 if it is not signed into law in 2026.

JPMorgan CEO Jamie Dimon said on Friday that banks will oppose the latest version of the bill because it still allows crypto companies to pay interest on user deposits, and he said the current iteration does not impose the same anti-money laundering (AML) and capital reserve requirements on crypto companies that banks must follow.

Dimon said, “The banks will not accept it that way,” and he added that banks would continue to “fight” the bill.

He also criticized crypto exchange Coinbase and its CEO Brian Armstrong’s efforts to pass the bill, saying, “No one is going to bow down to this guy or that company,” in remarks reported alongside the CLARITY debate.

Cointelegraph

CoinGape reported that Galaxy Digital CEO Mike Novogratz expects June to be the decisive month for the CLARITY Act, describing it as entering a “make-or-break” phase as Congress has a packed legislative calendar.

CoinGape quoted Novogratz’s X post: “June is ‘Clarity’ month. It’s literally now or never.”

CoinGape said Senator Cynthia Lummis and Treasury Secretary Scott Bessent urged swift action toward the U.S. crypto bill, with Lummis warning that delays could leave developers exposed with no legal protections and law enforcement without tools to hold bad actors accountable.

“Source: Senator Cynthia Lummis The crypto market structure bill is one of the most significant pieces of crypto regulations in the US, but it is unclear if it will be signed into law in 2026 due to opposition from the banking lobby and the looming US midterm elections”

Cointelegraph

Lummis wrote, “If the United States doesn’t establish the global standard for digital asset regulation, someone else will,” and she added, “China is not waiting.”

CoinGape also reported that Senate Majority Leader John Thune told Republican lawmakers they wouldn’t wrap up their reconciliation package this month, and Punchbowl News reporter Jake Sherman said the Senate “will go home until June, leaving the reconciliation bill unfinished.”

CoinGape cited crypto journalist Eleanor Terrett saying the CLARITY Act would be competing for floor time in June, noting there are four working weeks in June and just three in July before the August recess.