Lummis: Clarity Act Delays Risk Crypto Firms Leaving US
Senator Cynthia Lummis warned that continued delays to the Digital Asset Market Clarity Act increase the risk of crypto firms choosing to build outside the United States. She said regulatory uncertainty grows each day the bill stalls in Congress. The Clarity Act is proposed federal legislation that would establish clear legal rules for digital asset markets in the US.
Senate delays put bill passage at riskThe Senate Banking Committee postponed a scheduled Clarity Act markup session in January 2026 after industry disagreement over a proposed amendment on stablecoin interest payments. A stablecoin is a digital currency designed to maintain a fixed value, usually pegged to the US dollar. Prediction markets in April 2026 recorded only a 56% chance that President Trump would sign the bill into law before the end of 2026.
Midterm deadline adds pressure to timelineSenator Bernie Moreno warned in April 2026 that if the Clarity Act does not advance before May, the legislation may stall for years. Lummis separately cautioned that the bill faces a potential four-year delay if Congress fails to act before the 2026 midterm elections. Midterm elections are scheduled for November 2026.
Officials cite relocation risk to rival jurisdictionsUS Treasury Secretary Scott Bessent warned that legislative inaction is pushing crypto innovation to jurisdictions including Singapore and Abu Dhabi. Lummis echoed this concern, stating that firms face a growing incentive to build in markets where rules are already defined. No data source has yet quantified actual firm relocations as a result of the delay. The Senate Banking Committee postponed a scheduled Clarity Act markup session in January 2026 after industry disagreement over a proposed amendment on stablecoin interest payments. A stablecoin is a digital currency designed to maintain a fixed value, usually pegged to the US dollar. Prediction markets in April 2026 recorded only a 56% chance that President Trump would sign the bill into law before the end of 2026.
Midterm deadline adds pressure to timelineSenator Bernie Moreno warned in April 2026 that if the Clarity Act does not advance before May, the legislation may stall for years. Lummis separately cautioned that the bill faces a potential four-year delay if Congress fails to act before the 2026 midterm elections. Midterm elections are scheduled for November 2026.
Officials cite relocation risk to rival jurisdictionsUS Treasury Secretary Scott Bessent warned that legislative inaction is pushing crypto innovation to jurisdictions including Singapore and Abu Dhabi. Lummis echoed this concern, stating that firms face a growing incentive to build in markets where rules are already defined. No data source has yet quantified actual firm relocations as a result of the delay. Senator Bernie Moreno warned in April 2026 that if the Clarity Act does not advance before May, the legislation may stall for years. Lummis separately cautioned that the bill faces a potential four-year delay if Congress fails to act before the 2026 midterm elections. Midterm elections are scheduled for November 2026.
Officials cite relocation risk to rival jurisdictionsUS Treasury Secretary Scott Bessent warned that legislative inaction is pushing crypto innovation to jurisdictions including Singapore and Abu Dhabi. Lummis echoed this concern, stating that firms face a growing incentive to build in markets where rules are already defined. No data source has yet quantified actual firm relocations as a result of the delay. US Treasury Secretary Scott Bessent warned that legislative inaction is pushing crypto innovation to jurisdictions including Singapore and Abu Dhabi. Lummis echoed this concern, stating that firms face a growing incentive to build in markets where rules are already defined. No data source has yet quantified actual firm relocations as a result of the delay. Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment. All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Coinpaprika is not liable for any losses resulting from the use of this information.