US encryption legislation is once again under time pressure. US Senator Cynthia Lummis stated that if Congress fails to pass the CLARITY Act during this term, the next possible revival of the bill could not be until 2030.
Progress has been made in the joint efforts of the two institutions.
She believes the current Congress may be the best window to push the bill through. With the 2026 midterm elections approaching, the time available for Congress to process crypto legislation is dwindling. If the current Congress ends without the bill being passed, the process typically needs to be restarted in the next Congress.
The CLARITY bill had previously received bipartisan support in the House of Representatives, passing with 294 votes in favor and 134 against. Recently, the Senate Banking Committee also passed an updated version by a bipartisan vote of 15 to 9, propelling the bill further toward formal legislation.
Delays will affect developers and law enforcement tools
However, Lummis cautioned that the current pace of progress does not guarantee a predetermined outcome. There is considerable uncertainty as to whether future congresses will prioritize crypto legislation if the current window of opportunity is missed.
She stated that if the bill remains stalled, crypto developers will continue to operate in an environment with unclear legal boundaries, struggling to obtain clear protection. Regulators and law enforcement will also lack tools better suited to the digital asset market, making it difficult to address fraud, market manipulation, and emerging risks in a timely manner.
The SEC chairman remains optimistic about the bill's passage.
In contrast to Lummis's urgent statement, SEC Chairman Paul Atkins is more optimistic about the bill's prospects. In an interview with Fox Business, he stated his belief that Congress will ultimately pass the CLARITY Act and that President Trump will sign it into law.
Atkins believes this legislation will establish a clearer regulatory foundation for digital assets and help keep crypto innovation and investment within the United States. According to data from the prediction market platform Polymarket, there is approximately a 58.5% probability that the CLARITY Act will be signed into law by 2026.
