Senator Cynthia Lummis is urging Senate Democrats to support the CLARITY Act after months of negotiations over the cryptocurrency market-structure bill. Lummis said Democrats secured more than 115 changes in the latest draft, including tougher fraud provisions, additional funding for the Commodity Futures Trading Commission (CFTC), and stronger controls for crypto platforms.

A dispute over rules governing vertically integrated crypto companies has emerged as a new obstacle ahead of the Senate’s next cloture vote, scheduled for September 15. Democrats and Republicans are also negotiating consumer protections, ethics requirements, and oversight of digital-asset firms.

Lummis Highlights Democratic Priorities

Lummis said Democratic lawmakers helped shape the latest version of the Digital Asset Market Clarity Act. In a Thursday post on X, she said Democrats secured more than 115 policy changes during the negotiations and argued that they should support the bill when it reaches the Senate floor. Her post is available on X.

Among the provisions she highlighted were a felony bar for fraudsters and $150 million in additional CFTC funding. Lummis also pointed to stricter treatment of platforms such as Binance. She presented those measures as evidence that the legislation reflects bipartisan drafting and the priorities raised by Democrats during negotiations.

Revised Draft Sets Federal Crypto Framework

The Senate’s work builds on H.R. 3633, which the House passed in July 2025 by a vote of 294 to 134. Seventy-eight Democrats joined Republicans in supporting the measure. The proposal would establish federal rules for digital commodities and divide oversight responsibilities among major financial regulators.

Lummis released another updated version in July after work by the Senate Banking and Agriculture committees. Her office said the draft addresses fraud, money laundering, consumer safeguards, ethics, vertical integration, and stablecoin balances. The Senate Banking Committee advanced the legislation by a 15-9 vote in May 2026.

The revised bill also addresses when crypto assets would be treated as securities or commodities. It assigns defined roles to the Securities and Exchange Commission and the CFTC across different areas of the market.

Dispute Over Vertical Integration Continues

Lawmakers remain divided over parts of the market-structure package. Democrats are seeking language to address potential conflicts at vertically integrated crypto companies, which may control multiple functions such as trading, custody, token issuance, or other market activities.

Republicans have raised concerns about how future regulators could apply those provisions. The negotiations also include ethics standards and rules affecting stablecoin rewards or yield. Those unresolved sections could influence the level of Democratic support the bill receives during the Senate process.

The vertical-integration debate centers on how regulators should oversee companies that combine several market roles. Supporters of new standards want safeguards against conflicts of interest, while opponents favor language that more narrowly limits regulatory discretion under future administrations.

September Vote Presents 60-Vote Test

The Senate plans to resume regular business on September 14. Its schedule places the cloture motion for H.R. 3633 on September 15 at 2:15 p.m. The procedural vote will determine whether senators can move toward formal consideration of the CLARITY Act. It is therefore an early test of whether the chamber can begin debating the latest draft, not a final vote on enactment.

Republicans currently hold 53 Senate seats, Democrats hold 45, and independents hold two. As a result, Republican leaders need support from outside their conference to reach the usual 60-vote threshold for cloture. Lummis is directing her public appeal toward the Democrats who participated in the negotiations.

The bill has already received bipartisan support in the House, but Senate committees and negotiators have changed the text since that vote. Senators must now decide whether the latest version addresses enough outstanding concerns to allow debate.

Lummis has also argued that Congress has a limited window to complete digital-asset market-structure legislation. A further update from her is available on X.

Source: The Market Periodical.