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Senator Cynthia Lummis wants you to know: she counted the safeguards. More than 16 of them, to be precise.
The Wyoming Republican pushed back against Senator Elizabeth Warren’s claims that the Digital Asset Market Clarity Act of 2025, known as the CLARITY Act, contains loopholes that could benefit bad actors. Lummis pointed to specific provisions in the bill designed to combat illicit finance, arguing the legislation prioritizes consumer protection and law enforcement tools over industry favoritism.
What’s actually in the bill
The CLARITY Act, designated H.R. 3633, attempts to solve one of crypto’s longest-running regulatory headaches: figuring out which federal agency is in charge of what. The bill draws clearer lines between the SEC’s authority over digital assets that qualify as securities and the CFTC’s jurisdiction over those that function more like commodities.
Lummis specifically referenced Section 201 of the bill, which mandates application of Bank Secrecy Act and Anti-Money Laundering rules to entities covered by the legislation. She also cited Section 303, which introduces new sanctions authorities targeting entities linked to illicit activities.
Beyond those two provisions, the bill establishes clear trading and custody rules, a move supporters say is necessary to keep digital asset innovation within US borders rather than pushing it to friendlier jurisdictions overseas.
The Senate Banking Committee advanced the CLARITY Act on May 14, and the vote wasn’t strictly along party lines. Senators Ruben Gallego and Angela Alsobrooks, both Democrats, voted in favor of moving the bill forward.
Warren’s objections and the political backdrop
Warren’s criticism follows a familiar playbook. The Massachusetts senator has long positioned herself as crypto’s most vocal skeptic in Congress, consistently arguing that digital asset legislation needs stronger guardrails to prevent money laundering, terrorist financing, and consumer fraud.
Her argument this time centers on what she sees as missing oversight elements. Warren has pushed for amendments that would tighten regulatory enforcement mechanisms, suggesting the current version of the bill doesn’t go far enough despite its stated protections.
Republican leaders are targeting passage of the CLARITY Act potentially before the July 4 recess or, more likely, in August.
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