On May 7, 2026, Senator Cynthia Lummis (R-WY) warned that more delays to the CLARITY Act could cause many crypto companies to leave the United States. She described the bill as the “last chance” for real reform before the 2026 midterms, warning that waiting longer could push action to 2030.
Lummis’ Urgent Message
Lummis explained that ongoing uncertainty is already causing companies to move to places like Singapore, the UAE, and the EU, where rules are clearer. This trend hurts U.S. jobs, innovation, tax revenue, and the country’s global standing. She is still working with Chairman Tim Scott to get the Senate Banking Committee to review the bill in mid to late May.
Current Status
- The House passed the CLARITY Act in July 2025 with strong support from both partiesIn early May, the Senate reached a compromise on stablecoin yields, led by Senators Tillis and Alsobrooks.ay.
- More than 100 industry groups are calling for quick action, and Polymarket gives the bill about a 55 to 70 percent chance of passing in 2026.
- The bill aims to clarify which agency, the SEC or CFTC, oversees different parts of the crypto market, as well as set rules for DeFi, custody, and stablecoins.
Why It Matters for Crypto
Clearer regulations could help large investors enter the market, support tokens like XRP, SOL, and stablecoins, and fit with Trump’s pro-crypto plans, such as the Strategic Bitcoin Reserve. Recent positive news has already improved how people feel about Bitcoin.
Outlook
A May markup could lead to Senate floor action in June/July and President Trump’s desk. Missing this window risks stalling until after midterms. Banking lobby pushback on stablecoin rules remains a hurdle, but momentum favors progress.
Bottom Line: Lummis’ warning shows that this is a key moment for U.S. leadership in crypto. Keep an eye on Senate Banking Committee updates this month.