Key Points
- Senator Lummis to release CLARITY Act compromise text over July 4 weekend.
- Stablecoin provisions revised amid banking sector criticism and ongoing Senate negotiations.
Senator Cynthia Lummis announced that Senate negotiators will publish compromise text for the CLARITY Act, formally titled the Digital Asset Market Clarity Act (H.R. 3633), over the July 4 holiday weekend.
She indicated that a Senate floor vote push is expected in July following the text release.
Lummis has stated she will not seek reelection in 2026, placing added urgency on finalizing a digital asset regulatory framework before her term concludes in January 2027.
Senate Timeline and Legislative Background
Speaking on Fox Business’ Mornings with Maria, Lummis said the bill text would be released around July 4, with legislative movement planned later in the month.
The House passed H.R. 3633 in July 2025 with a 294–134 vote, and the Senate Banking Committee advanced it by a 15–9 margin on May 14, 2026.
Lummis has expressed confidence that the bill can meet the Senate’s 60-vote cloture threshold despite opposition from segments of the banking industry.
The legislative calendar tightens significantly ahead of the August recess, narrowing the available window for floor consideration if text is not released before the break.
Stablecoin Revisions and Outstanding Issues
A central point of debate involves Section 301 of the bill, which addresses whether stablecoin issuers may offer rewards programs resembling interest-bearing bank deposits.
JPMorgan Chase CEO Jamie Dimon publicly argued that the legislation could permit crypto platforms to provide deposit-like rewards without equivalent regulatory safeguards.
Lummis rejected that characterization and pointed to revised language in Section 301.
The updated provision allows certain rewards programs but prohibits benefits directly tied to account balances in a way that mirrors traditional bank interest payments.
An earlier draft from the Senate Banking Committee would have imposed a broader restriction on offering interest on inactive stablecoin deposits.
Beyond stablecoin language, negotiators are continuing discussions on provisions related to decentralized finance (DeFi) protocols, anti-money laundering requirements, and ethics clauses.
Lummis confirmed that multiple AML measures are included in the current draft, building on prior legislative proposals addressing compliance standards.
Ethics provisions remain under negotiation following a closed-door session that ended without agreement, leaving enforcement language and related oversight mechanisms unresolved.
The remaining discussions will determine whether consensus can be reached on DeFi regulation and ethics language without altering the existing stablecoin compromise.
