Momentum for the crypto market structure bill is waning in Washington. Thus, Sen. Cynthia Lummis warned that the U.S. software developers would be in trouble again if Congress doesn’t approve the legislation this session.

Senator Lummis Warns On Consequences of CLARITY Act Not Passing

In a post on X, Lummis wrote, “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.”

Her remarks were made as U.S. Capitol political divisions grow. Moreover, the prospects for the CLARITY Act passing this year are fading, according to TD Cowen analyst Jaret Seiberg.

Democrats may refrain from supporting the bill if tougher regulations are not added, according to Seiberg. They are increasingly pressing lawmakers to impose such measures on cryptocurrency trading. One idea that’s been floated is a proposal to disallow the President, the Vice President and members of Congress from actively trading digital assets.

The debate around the CLARITY Act may also introduce more scrutiny into the crypto projects connected to President Donald Trump. These include World Liberty Financial, American Bitcoin, and TRUMP and MELANIA meme coins.

The legislation’s backers on the Democratic side are hesitant to support the bill without additional language about conflict of interest, Seiberg said. Meanwhile, Republicans would be able to oppose amendments that they think are directly aimed at Trump-affiliated crypto enterprises.

The standoff has left the outlook murky on whether lawmakers will be able to get the CLARITY Act through Congress before the end of the year.

Crypto Market Structure Bill Passing Odds

Sentiment has also been changing as evidenced by prediction markets. The chances of the CLARITY Act passing before 2027 fell from almost 75% last week to 49% according to Kalshi odds. The odds for approval prior to August 2026 and July 2026 also declined.

The CLARITY Act is set to compete for a seat on the Senate floor this time, when legislators return from recess in early June, journalist Eleanor Terrett wrote. A host of big-ticket policy issues are also likely to be prominent on the agenda. These involve as a housing package, a farm bill and the upcoming June 12, FISA deadline.

However, internal Republican divisions on funding issues have placed additional strain on a packed legislative agenda. It makes the roadmap for the CLARITY Act even more complex.

Nonetheless, earlier this month, the talks are ongoing behind closed doors, Lummis said, despite the setbacks. “We’re going to take the bill that we passed in the Senate Banking Committee last week,” she swid.

In addition, she added that they’re going to be working on ethics provisions in the CLARITY Act. Also, they will be working on technical revisions to the GENIUS Act. These efforts are directed toward a broad, total digital asset framework package, she said.