Sen. Lummis’ Warning On CLARITY Act: Miss 2026, Prosecution Comes Next

Senator Cynthia Lummis issued a fresh warning on Wednesday about the timing and urgency of the long-awaited CLARITY Act, a bill intended to lay out a clearer regulatory framework for the crypto industry. 

In her comments, the pro-crypto lawmaker focused on what she described as the real-world risk to software developers if the legislation does not move forward quickly enough.

Lummis Warns Code Publishers Are At Risk

Lummis’s statement followed this month’s progress in the Senate. The Senate Banking Committee approved its portion of the bill, building on a prior step earlier in January when the Agriculture Committee successfully voted on its version. 

With those committee actions complete, the bill still faces several major hurdles before it could become law: a full Senate vote, the legislative reconciliation steps needed to finalize the bill, and a final agreement between the House and the Senate—before the legislation reaches the President’s desk.

On X, the platform formerly known as Twitter, Lummis said, “If the Clarity Act doesn’t pass this Congress, American software developers will be targeted again for prosecution in the near future just for publishing code. These are the stakes.” 

The core of her warning, in other words, is that today’s regulatory uncertainty leaves a lot of software developers looking over their shoulders—especially when they’re writing code that helps run blockchain-related services.

What The CLARITY Act Would Change

The CLARITY Act includes several provisions aimed at reducing that uncertainty. One key part is the Blockchain Regulatory Certainty Act, which is designed to protect software developers and infrastructure providers from being treated as money transmitters when they do not control customer funds. 

The CLARITY Act also addresses scenarios in which people compile network transactions. It directs the SEC to clarify when securities laws apply to decentralized finance trading protocols, specifically those involved in activities tied to securities.

As such, if the bill does not pass this year, a new administration—potentially bringing fresh appointments at regulatory agencies—could increase scrutiny across the broader sector. 

This could also draw more attention to code publishers operating in an environment where legal boundaries remain unclear. This could lead to renewed action similar to that seen during the Biden administration and under the leadership of former SEC Chair Gary Gensler.

Featured image created with OpenArt; chart from TradingView.com