Lummis counters Warren's Clarity Act criticism with 16 safeguards

The exchange highlights the deepening divide in Congress over how to regulate digital assets. Warren has long pushed for stricter anti-money laundering rules, including her own Digital Asset Anti-Money Laundering Act. Lummis, a Republican from Wyoming, has championed the Clarity Act as a way to bring crypto firms under a clear federal framework while preserving innovation.

Warren's letter cited the $3.84 billion figure from a Chainalysis report that linked Iranian hacking groups to CoinEx, a Hong Kong-based exchange. The Treasury Department had sanctioned CoinEx in 2023, alleging it allowed users in Iran to trade crypto despite U.S. sanctions. Lummis did not dispute the figure but argued that the Clarity Act would not have prevented the Treasury's existing sanctions powers.

"The Clarity Act strengthens, not weakens, the tools already available to law enforcement," Lummis said in the statement. "The 16 safeguards are drawn from the Bank Secrecy Act, the Patriot Act, and current FinCEN guidance." She did not list all 16 provisions but said Sections 201, 303 and 305 are representative of the bill's approach.

The bill has passed the House Financial Services Committee on a party-line vote and awaits a floor vote. No date has been set. Lummis is also working on a companion version in the Senate, though it faces opposition from Warren and other Democrats who want stricter rules.