Lummis Rejects Warren's Claims on Digital-Asset Clarity Act

Sen. Cynthia Lummis pushed back on Elizabeth Warren's criticisms of the Clarity Act, rejecting the suggestion that the digital-asset bill would create gaps for illicit finance. Lummis pointed to more than 16 safeguards written into the legislation.

The exchange marks the latest flashpoint between two senators who have taken sharply different approaches to crypto oversight. Warren has argued that the Clarity Act, which sets a federal framework for digital-asset classification and exchange registration, would weaken anti-money-laundering protections. Lummis, a co-sponsor, called those characterizations off base.

The safeguards Lummis cited include mandatory know-your-customer protocols, transaction reporting thresholds, and provisions for law-enforcement subpoenas. She said the bill closes existing loopholes rather than opening new ones. Warren's office did not immediately respond to a request for comment.

The Clarity Act has divided both parties. Supporters say it gives the industry regulatory certainty while maintaining enforcement teeth. Critics, including Warren, say it preempts state-level consumer protections and may not go far enough on disclosure requirements.

Lummis's defense came as the bill's sponsors push for a committee vote before the August recess. The timeline is tight, and the debate over illicit-finance risk is likely to shape amendments if the bill advances.