Blumenthal's 'Crypto for Crooks' Line Raises Stakes for CLARITY Act

Sen. Richard Blumenthal on Thursday called cryptocurrency the "currency of choice for crooks" after a romance scam victim detailed how fraudsters used digital assets to drain her savings.

Lori Flowers, a pharmaceutical account executive, testified at a Capitol Hill forum convened by the Connecticut Democrat that she lost much of her savings in a 2022 romance scam. The fraudsters moved money quickly and irreversibly through crypto, she said. Blumenthal shared her story on X, writing that "for them to succeed, her scammers needed crypto."

The forum marked the latest escalation in a Democratic push against the industry. Blumenthal warned that the Senate's CLARITY Act would weaken enforcement by limiting the role of state attorneys general. He is one of several Senate Democrats opposing the Republican-backed bill, which aims to create a federal regulatory framework for digital assets.

Ranking Banking Committee member Elizabeth Warren has called the latest version of the CLARITY Act "riddled with massive loopholes." Sen. Chris Van Hollen and Sen. Lisa Blunt Rochester have also voiced opposition, saying the bill does not sufficiently protect consumers.