The crypto policy battle in Washington just got a little more personal. Senator Cynthia Lummis (R-Wyo.) fired back at Senator Elizabeth Warren (D-Mass.) on Wednesday, defending the Clarity Act—a proposed regulatory framework for digital assets—against Warren's claims that it fails to address illicit finance risks.
In a post on X, Lummis pointed to specific sections of the bill text that she says prove the legislation is packed with safeguards, not loopholes. She highlighted Section 201, which extends the Bank Secrecy Act and anti-money laundering (AML) provisions to digital assets. The Bank Secrecy Act, enacted in 1970, requires financial institutions to help the government detect and prevent financial crimes.
Then there's Section 303, which gives the Treasury Department the power to monitor, restrict, or even completely ban digital asset transactions connected to foreign jurisdictions if they pose a "money laundering concern." And Section 305 allows law enforcement to request that exchanges and stablecoin issuers delay transactions suspected of being linked to illicit activity.
"If you don't like crypto, then say it, but stop these baseless attacks," Lummis wrote, directly addressing Warren.
Warren has been a vocal critic of the Clarity Act, arguing that it doesn't do enough to curb illicit finance. She recently pointed to Iran-affiliated groups that are channeling billions of dollars through cryptocurrency platforms, including CoinEx—an exchange that faced a lawsuit and ultimately shut down its U.S. operations. According to Warren, wallets hosted by CoinEx have moved more than $3.84 billion since 2019, playing a big role in connecting Iran's crypto operations to global markets.
Warren has also raised concerns about conflicts of interest arising from President Donald Trump and his family's involvement in cryptocurrency ventures. The Clarity Act, she argues, fails to tackle these issues head-on.
Despite the criticism, the bill has momentum. It cleared the Senate Banking Committee in May, with some Democratic senators breaking ranks to vote in favor alongside all Republican members. As of this writing, the bill sits on the Senate Legislative Calendar, making it eligible for a full floor vote.
The Clarity Act is designed to establish a clear regulatory framework for cryptocurrencies, something the industry has long sought. But as the back-and-forth between Lummis and Warren shows, the path to passage is anything but clear.
