US Crypto Regulation in Transition: Clarity Act Moves Closer, Senator Lummis Steps Down

Clarity Act Could Be Passed as Early as January

In the United States, regulation of the crypto market is taking concrete shape. The so-called Clarity Act, a bill on the market structure for digital assets, is up for a vote in Congress and is expected to be passed as early as January ^[2]. David Sacks, the US government's crypto and AI czar, stated on Thursday that they are "closer than ever" to passing landmark crypto legislation. The goal is to complete the process in January ^[2].

The Clarity Act is intended to more clearly define the responsibilities of regulatory authorities and close legal gaps for crypto companies ^[2]. While the legislation is being viewed as a political signal and milestone for the crypto industry, market observers are tempering expectations of immediate price effects.

Trading Legend Warns Against Excessive Expectations

Experienced trader Peter Brandt is dampening expectations about possible impacts on Bitcoin's price. Brandt explained that while the Clarity Act is necessary, it has no fundamental influence on Bitcoin's valuation. "Is this a world-changing macroeconomic development? No. Certainly necessary, but nothing that should redefine value," Brandt told Cointelegraph ^[2]. In his view, regulating an asset is not an extraordinary event, even though many long-term Bitcoin investors have long rejected government intervention ^[2].

Despite his restraint, Brandt emphasized that the Clarity Act would be progress for the industry overall. A clearly defined regulatory structure could contribute to institutional acceptance in the long term, but is not a short-term price driver ^[2]. John Glover, Chief Investment Officer at crypto lender Ledn, shared this assessment. The potential passage is already priced into the market and will hardly trigger short-term price reactions ^[2].

Senator Lummis to Relinquish Mandate in 2027

Parallel to progress on legislation, the crypto industry is losing one of its most important political voices. US Senator Cynthia Lummis will not run again in the 2026 Senate elections and will step down from her mandate at the end of the current legislative period in 2027 ^[1].

Lummis is among the most prominent advocates for digital assets in the current US Congress and has positioned herself as a central political voice for Bitcoin and blockchain since taking office in January 2021 ^[1]. Politically, the senator recently played a key role in drafting and supporting the Market Structure Bill for digital assets ^[1].

"Sprinter in a Marathon"

Explaining her decision, Lummis said it was not an easy one. "I am a dedicated legislator, but I feel like a sprinter in a marathon," Lummis said ^[1]. After intensive session weeks in the fall, she realized that she does not have the necessary energy for another six-year term ^[1].

The Republican from Wyoming has advocated for clear regulation of cryptocurrencies in the past and spoken out in favor of promoting blockchain technologies ^[1]. Lummis's withdrawal thus comes during a phase of political uncertainty for crypto legislation ^[1]. It remains to be seen whether her successor will continue her policies ^[1].