Senator Cynthia Lummis, a key figure in the bill's negotiations, expressed to CoinDesk her satisfaction that the revised bill is now ready for discussion.
By Nikhilesh De|Edited by Jesse Hamilton Jul 22, 2026, 11:19 p.m. 4 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on U.S. Senator Cynthia Lummis (Jesse Hamilton/CoinDesk)SummaryShow- Senator Cynthia Lummis informed CoinDesk that allowing state attorneys general to pursue criminal or private litigation under the Clarity Act's ethics clause was a crucial point for Republican negotiators.
- Discussions regarding the ethics provision are expected to continue over the weekend, along with several other matters in the legislation.
- A group of Democratic Senators expressed on Wednesday their opposition to the current version of the bill.
The draft of the U.S. Senate's Digital Asset Market Clarity Act is still subject to modifications, particularly regarding its ethics section. Senator Cynthia Lummis, one of the primary negotiators, indicated that the initiative is progressing towards potential passage following the release of the text.
Input from the Senate's Judiciary, Ethics, and Intelligence Committees has shaped the bill, Lummis stated to CoinDesk on Wednesday. Despite the challenging process, the bill is now open for further input.
"It's time to unveil the comprehensive bill that we will be voting on and gather feedback from the industry that will soon be regulated, as well as other stakeholders," Lummis remarked. "I am happy we've reached this stage."
Earlier on Wednesday, Lummis released an updated version of the Clarity Act, which consolidates the bills passed by the Senate Banking and Agriculture Committees into a single, more extensive document. This updated draft is unlikely to represent the final iteration of the legislation.
Talks about the proposed restrictions on conflicts of interest for government officials regarding their crypto activities will continue through the weekend, with some illicit finance provisions also expected to be revisited, according to Lummis.
The ethics clause has been a significant point of concern for both the industry and Congress. Lummis explained that Republican negotiators had engaged with Democrats for an extended period but found themselves at a standstill regarding the authority of state attorneys general to initiate criminal or private lawsuits against parties affected by the ethics provision.
"This was a non-negotiable issue for many U.S. senators who were reluctant to be vulnerable to lawsuits from different state attorneys general," Lummis noted. "This concern was also shared by the White House, which has faced multiple legal actions from state attorneys general, making it a critical issue for many senators and the White House alike."
Instead, states could potentially take legal action against crypto exchanges that list assets violating the ethics provision, Lummis added.
The ethics agreement would extend to the president, all lawmakers, high-ranking federal judges (including those serving on district courts, appeals courts, the U.S. Supreme Court, or the Court of International Trade), as well as their spouses, according to Lummis.
Former President Donald Trump has business interests in the crypto sector, including a memecoin venture that features a coin named after him and a stablecoin issuer.
A coalition of Democratic Senators stated late Wednesday that the bill still does not meet their expectations for support, yet they remain willing to collaborate with Republicans on improvements. Senator Elizabeth Warren, the leading Democrat on the Senate Banking Committee, contended on Wednesday that the current policy would allow Trump to maintain his crypto businesses largely unscathed, with any misconduct potentially overlooked by his loyal Department of Justice and legally shielded from prosecution after he leaves office.
Additional Issues Under Discussion
In addition to ethics, lawmakers are likely to continue negotiations on illicit finance provisions, according to Lummis.
"We believe we have made significant progress," she stated, as the initiative addresses the Bank Secrecy Act, money laundering safeguards, sanctions for exchanges, and decentralized finance (DeFi) regulations.
Some of the new provisions were added at the request of law enforcement, including measures to combat crypto automated teller machine (ATM) fraud.
Furthermore, there is a provision that allows crypto platforms to freeze funds if they suspect the assets are linked to questionable transactions, especially if they are cooperating with law enforcement, she noted.
The draft also indicates it is the "sense of Congress" that at least two commissioners from the Securities and Exchange Commission and Commodity Futures Trading Commission should be nominated with input from the minority party. Currently, neither agency has Democratic commissioners, with the SEC led by three Republicans and the CFTC having only one commissioner overseeing the agency.
Lummis indicated that the delay in securing Democratic nominations rests with Minority Leader Chuck Schumer, who must propose names to the White House.
"The language is not meant to compel the president but rather to encourage Senator Schumer to submit names to the president," she explained.
As of the time of publication, it remains uncertain when the bill will be brought to the Senate floor for a vote. Majority Leader John Thune's office informed CoinDesk earlier Wednesday that he aims to bring the bill forward soon, though Lummis acknowledged that some senators would be absent next week for Senator Lindsey Graham's funeral. The bill requires a minimum of 60 votes to proceed, and the Senate is scheduled to recess for summer on August 7.