Lummis Tells Warren to Put the 'Baseless' Down: CLARITY Act's Two-Week Senate Sprint Begins 🏛️

The National Organization of Black Law Enforcement Executives (NOBLE) has become the first major law enforcement organization to publicly endorse the Digital Asset Market Clarity (CLARITY) Act, sending a letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer stating that the bill's provisions "provide law enforcement with meaningful new capabilities while preserving longstanding criminal enforcement authorities." The endorsement, which specifically flagged enhanced tools against money laundering, digital asset kiosk crime, and unlicensed money transmitting businesses, arrives as the Senate prepares to return from recess on July 13 with a narrowing window to pass the legislation before the August state work period.

Senator Cynthia Lummis, one of the bill's proponents, defended the legislation against criticism from Senator Elizabeth Warren, who argued on June 28 that "more evidence that our adversaries exploit crypto to move billions" and that the bill would weaken illicit finance standards. Lummis countered that Section 201 applies Bank Secrecy Act and anti-money laundering (BSA/AML) rules to crypto, Section 303 adds new sanctions aimed at Iran, and Section 305 lets exchanges freeze dirty money, stating: "If you don't like crypto, then say it, but stop these baseless attacks." Senate Banking Committee Chair Tim Scott posted on X on June 29, 2026, that the Senate "should vote on crypto market structure legislation in July," with Lummis adding on Fox Business that negotiators plan to release text over the July 4th recess "and give people one last really thorough look at the bill, and then we're moving in July."

The legislative fight remains concentrated on Section 604 of the CLARITY Act, derived from the Blockchain Regulatory Certainty Act (BRCA), which would prevent software developers who do not exercise ultimate control over their tools from being classified as money transmitters under Bank Secrecy Act rules. The National Sheriffs Association sent a May letter to Senate Banking Committee leaders stating: "No good reason supports giving mixers, tumblers, and DeFi a blanket exemption. While some software developers are not engaged in money transmitting or other activity that should subject them to BSA regulation, plenty of others are." White House crypto adviser Patrick Witt invited law enforcement groups opposing the provision to a Monday meeting to resolve objections, according to reports.

SEC Commissioner Hester Peirce said on the Searching for Mana podcast that she expects the CLARITY Act to pass the full Senate this summer, with Bitcoin Magazine posting on July 1, 2026, that Peirce stated: "I'm still optimistic it will get done this summer... I expect that we'll see it pass soon." The bill cleared the House 294–134 on July 17, 2025, and advanced out of the Senate Banking Committee 15–9 on May 14, 2026, with Democrats Ruben Gallego of Arizona and Angela Alsobrooks of Maryland joining all 13 Republicans in committee. The merged Senate Banking Committee text and parallel Agriculture Committee bill must be combined before a floor vote that requires 60 votes to clear cloture.

Prediction markets have turned cautious on the timeline, with Polymarket odds of the CLARITY Act becoming law in 2026 falling to 39%, down from 64% in early June, while Galaxy Research lowered its odds to 50% from 60% on June 5, citing the shrinking Senate calendar. More than 100 crypto firms and trade associations have signed a public letter pressing Senate leadership to move the bill forward, and Treasury Secretary Scott Bessent has framed passage as critical to maintaining U.S. financial leadership and the dollar's reserve status. Uncertainty over the bill's final form remains after President Donald Trump cancelled a signing ceremony for the 21st Century ROAD to Housing Act, which contained a ban on a central bank digital currency (CBDC), stating he would not sign the housing bill until Republicans passed the SAVE America Act, adding in March that he would "not sign other bills" until that legislation cleared.