Senator Cynthia Lummis stated on June 22 that the CLARITY Act ends prosecution risk for U.S. software developers after the Senate Banking Committee advanced the bill in a 15-9 vote on May 14. The legislation addresses legal exposure faced by engineers writing code for decentralized finance tools, wallets, and onchain services, with Lummis arguing that the absence of clear rules leaves developers uncertain whether routine work could be treated as a crime. The bill aims to resolve regulatory uncertainty that has persisted since prior enforcement actions, with supporters warning that delay could push comprehensive crypto rules to 2030 and risk ceding digital-asset leadership to China and Europe.
Senate Banking Committee Advances CLARITY Act in 15-9 Vote
The Senate Banking Committee advanced an amended version of the Digital Asset Market Clarity Act in a bipartisan 15-9 vote on May 14. The measure has since been placed on the Senate calendar, making it formally eligible for floor consideration. Senator Elizabeth Warren opposed the bill during the committee markup, offering 44 amendments, none of which passed.
CLARITY Act Framework Splits Oversight Between SEC and CFTC
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. The legislation 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.
House Passed Bill 294-134 in July 2025
The House passed its version of the CLARITY Act in July 2025 by a 294-134 margin. 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.
160 Security Veterans and 1,200 Tech Firms Back Legislation
A group of 160 national security, intelligence, and law enforcement veterans signed a letter to Senate leaders backing the measure. More than 1,200 tech companies pressed the Senate to pass it quickly. Ripple Chief Executive Brad Garlinghouse stated support for the bill, saying "this is the moment" for U.S. crypto rules.
FAQ
What does the CLARITY Act do for software developers?
The CLARITY Act shields developers and infrastructure providers who never take custody of customer funds from being classified as money transmitters, removing heavy licensing and surveillance obligations that have created legal uncertainty.
When did the Senate Banking Committee vote on the CLARITY Act?
The Senate Banking Committee advanced the bill in a 15-9 bipartisan vote on May 14, placing it on the Senate calendar for floor consideration.
How many votes does the CLARITY Act need to pass the Senate?
The bill must clear the 60-vote filibuster threshold in a full Senate vote before reconciliation with the House version and a presidential signature.
