Senator Lummis says China will 'write the rules' of the new financial era if CLARITY fails

Sen. Cynthia Lummis warned that failure to pass the CLARITY Act would cede global crypto-rulemaking to other countries — notably China — heightening regulatory uncertainty for U.S. crypto markets. The Senate Banking Committee advanced the bill in May 2026, but opposition from banks (JPMorgan CEO Jamie Dimon said banks will fight the bill over deposit interest and AML/capital concerns) and the narrowing legislative window ahead of midterms make passage uncertain. Lummis said missing the 2026 window could delay meaningful U.S. crypto regulation until 2030, a prospect that could weaken U.S. exchanges, DeFi development and stablecoin frameworks. Market reaction is reflected in spot crypto prices shown in the article (e.g., BTC $73,645, ETH $2,013), but the story’s market impact is mainly regulatory — increased downside risk for U.S.-based crypto firms if the bill stalls, and potential competitive advantage for jurisdictions that act first.