Lummis leaves the Senate: How cryptocurrency policy is changing

Senator Cynthia Lummis has made a surprising announcement: she will not seek re-election when her term ends in 2027. This decision, which she attributes to the “difficult, exhausting” final weeks of this year’s Congress, shocks the crypto industry, which has long regarded her as its most steadfast advocate on Capitol Hill. But before Lummis leaves, she intends to see her market structure legislation for digital assets across the finish line – an ambitious goal in her remaining time.

The Time Race for Market Structure Legislation

The market structure legislation, which Cynthia Lummis has been heavily involved in, is currently in bipartisan negotiations. Originally, the bill was to be revised by the end of 2025 but has been pushed back to early 2026. For Lummis, this is a race against time: she must ensure the legislation is passed before her term expires.

With this urgency, Lummis shared an insightful post on December 30, 2025: “Our market structure legislation enables public-private partnerships to combat illegal finance. With our bill, we can protect Americans and foster innovation.” This statement encapsulates the dilemma of modern regulation – enabling security and growth simultaneously.

The Foundation: Coalition and Core Principles

Cynthia Lummis is not working alone. She has teamed up with senators like Tim Scott (R-SC), chairman of the Banking Committee, as well as Thom Tillis (R-NC) and Bill Hagerty (R-TN). Together, they have developed guiding principles for the market structure legislation, which rest on three pillars:

Innovation-Friendly Rules: The legislation recognizes tokenization as an efficiency booster in finance and creates space for technological development.

Consumer Protection: Clear regulatory rules for cryptocurrencies aim to safeguard Americans from risks.

Combating Illegal Activities: The bill includes compliance requirements for centralized intermediaries, measures against money laundering, and promotes public-private partnerships to increase detection rates.

Lummis repeatedly emphasizes that the legislation primarily targets individuals with malicious intent and not innovation itself.

Why This Moment Is Critical

For the crypto industry, Lummis’ departure represents a loss. David Sacks, the White House’s AI and crypto advisor, clearly states: “Senator Lummis was a great ally on crypto issues – I am very sorry to see her go!” Similarly, Conner Brown of the Bitcoin Policy Institute describes Lummis as “the first and best Bitcoiner in the Senate” and praises her “leadership in so many critical moments for Bitcoin policy during these decisive years.”

Lummis sees legislation as crucial to ensuring that the growth of digital assets in America happens domestically rather than abroad. Her remaining time in the Senate until January 2027 is thus a window for a legacy – one that could fundamentally shape the future regulation of the crypto sector in America.

The Wyoming primary in 2026 will show who will take Lummis’ place and whether the crypto industry will find an equally strong ally.