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Lummis Fires Back at Warren, Says CLARITY Act Has 16+ Illicit Finance Safeguards
Sen. Lummis says the CLARITY Act includes 16+ illicit finance safeguards, pushing back against Sen. Warren's claim that it would weaken crypto AML rules. Over 70,000 law enforcement professionals urge revisions.
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Senator Cynthia Lummis said the CLARITY Act contains more than 16 illicit finance safeguards, pushing back against claims that the legislation would create loopholes for money laundering and sanctions evasion.
Lummis (R-WY) responded after Senator Elizabeth Warren (D-MA) argued the bill would make those risks worse. Warren’s comments followed a report alleging that a cryptocurrency exchange had become a major channel for illicit Iranian funds. She said the report showed adversaries continue to use crypto to move billions of dollars and that the CLARITY Act would weaken efforts to stop those activities.
According to Lummis, more than 16 safeguards are baked into the legislation. She cited Sections 201 and 303 as concrete mechanisms designed to combat money laundering and sanctions evasion. Section 305 would allow crypto exchanges and stablecoin issuers to temporarily freeze suspected illicit funds while law enforcement obtains legal orders, and would shield firms from civil liability when they act in good faith.