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Senator Cynthia Lummis Backs Clarity Act as Digital Asset Regulatory Framework

Senator Cynthia Lummis said existing risks persist because the United States lacks clear rules, and argued the Clarity Act would define oversight by the SEC (U.S. securities regulator) and CFTC (U.S. derivatives regulator).

Summary

Senator Cynthia Lummis said concerns raised by the ranking member already exist because there is no regulatory framework for digital assets in the United States. She said the Clarity Act would establish clearer rules for oversight by the SEC (U.S. securities regulator) and CFTC (U.S. derivatives regulator), with the stated goals of protecting compliant market participants, penalizing misconduct, and encouraging the digital asset industry to operate in the United States. The statement reflects a longstanding industry debate that legal uncertainty can push crypto firms offshore and complicate enforcement standards.

Terms & Concepts
  • CFTC: The Commodity Futures Trading Commission, the U.S. regulator that oversees derivatives markets and is often discussed in crypto policy for its role in supervising certain digital asset products.
  • SEC: The Securities and Exchange Commission, the U.S. regulator responsible for securities markets and a central agency in determining whether some digital assets fall under securities laws.
  • Regulatory framework: A defined set of laws and oversight rules that explains how an industry operates, who regulates it, and how violations are handled.