U.S. Senator Cynthia Lummis (R-Wyo.) defended the proposed CLARITY Act, saying the bill includes more than 16 safeguards targeting illicit finance. The remarks push back on claims that the legislation would open loopholes for money laundering and sanctions evasion in digital asset markets.
Lummis Pushes Back on Illicit Finance Criticism
Lummis said the CLARITY Act embeds numerous controls intended to address anti-money-laundering and sanctions compliance for digital asset activity. She argued the provisions are designed to reinforce existing financial-crime frameworks and prevent abuse without stifling legitimate innovation.
Warren’s Position
Senator Elizabeth Warren (D-Mass.) and allied lawmakers have warned that new crypto legislation must not weaken current illicit-finance safeguards. Warren has advocated for stricter oversight through measures such as the Digital Asset Anti-Money Laundering Act, which would extend Bank Secrecy Act obligations to a wider range of crypto participants and bolster sanctions enforcement.
Policy Context
The debate underscores a broader divide in Congress over how to regulate digital assets. The House passed the Financial Innovation and Technology for the 21st Century Act (FIT21) in 2024 to establish a market-structure framework, but the Senate has yet to coalesce around a comprehensive approach. Lummis, a long-time advocate for clearer crypto rules, has previously backed bipartisan efforts aimed at defining regulatory responsibilities and strengthening consumer protections.
What’s Next
The CLARITY Act would need to advance through committee and secure floor consideration in the Senate. Full details of the bill’s illicit-finance safeguards have not been released, and any final package is likely to reflect negotiations among Senate committees, the Treasury Department, and lawmakers focused on anti-money-laundering enforcement.