U.S. Senator Cynthia Lummis is urging colleagues to pass the Digital Asset Market Clarity Act, arguing the bill would free software developers from the threat of prosecution for simply publishing code.
Key Takeaways:
Lummis says the CLARITY Act ends prosecution risk for U.S. coders after the Senate panel’s 15-9 vote. The CLARITY Act could reach a full Senate vote in 2026, needing 60 votes to clear the filibuster. Backers, including 160 security veterans and 1,200 tech firms, warn delay risks pushing rules to 2030.“Software developers should not need an army of lawyers to know if their code is legal. The Clarity Act ends that absurdity.”
The Digital Asset Market Clarity Act, known as the CLARITY Act, would split oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) and set out when a token should be treated as a security or a commodity.
It also carries language to shield developers and infrastructure providers who never take custody of customer funds from being classified as money transmitters, a designation that carries heavy licensing and surveillance obligations.
A Bill Months in the MakingThe legislation has been advancing in stages, with the House passing its version in July 2025 by a 294-134 margin, and on May 14, 2026, the Senate Banking Committee advanced an amended bill in a bipartisan 15-9 vote. The measure has since been placed on the Senate calendar, making it formally eligible for floor consideration.
Industry and National Security SupportSupporters argue that regulatory certainty would keep developers and startups onshore rather than pushing them toward jurisdictions with clearer frameworks, such as the European Union’s Markets in Crypto-Assets (MiCA) regime. Without it, they say, the U.S. risks exporting its most promising builders along with the jobs and tax revenue they generate.
The next hurdle is a full Senate vote, where the bill must clear the 60-vote filibuster threshold before any reconciliation with the House version and a signature from President Donald Trump. With the legislative calendar tightening, Lummis and her allies are betting that the prospect of renewed prosecutions and the risk of falling behind global rivals will be enough to move undecided senators. For developers watching from the sidelines, the outcome will determine whether writing code remains a legal gray area or finally gets a clear rulebook.
