Sen. Cynthia Lummis (R-Wyo.) pushed back on Wednesday against Sen. Elizabeth Warren’s (D-Mass.) critique of the Clarity Act, stating that the cryptocurrency legislation has built-in safeguards against illicit finance.
Lummis’ Rebuttal To Warren
In an X post, Lummis pointed to Sec. 201 of the bill text, which extends Bank Secrecy Act and anti-money laundering provisions to digital assets.
Enacted in 1970, the Bank Secrecy Act requires banks and financial institutions to assist government agencies in detecting and preventing financial crimes.
The Republican then highlighted Sec. 303, which grants the Treasury the power to monitor, restrict, or completely ban digital asset transactions connected to foreign jurisdictions if they pose a “money laundering concern.”
Lummis also referenced Section 305, which allows law enforcement agencies to request that exchanges and stablecoin issuers delay transactions suspected of being linked to illicit activity.
“If you don’t like crypto, then say it, but stop these baseless attacks,” Lummis fired back at Warren, who had previously criticized the Clarity Act for failing to adequately address illicit finance risks.
The Clarity Act has 16+ illicit finance safeguards, not loopholes:
— Senator Cynthia Lummis (@SenLummis) July 1, 2026
✅ Sec 201: BSA/AML applies to crypto
✅ Sec 303: new sanctions to hit Iran
✅ Sec 305: exchanges can freeze dirty money
If you don’t like crypto, then say it, but stop these baseless attacks. https://t.co/JZVhjC9Efn
Warren Remains Critical Of ‘Clarity’
Warren pointed out that Iran-affiliated groups are channeling billions in transactions via cryptocurrency platforms, including CoinEx—an exchange that faced a lawsuit and ultimately shut shop in the U.S.
CoinEx has reportedly played a big role in connecting Iran’s cryptocurrency operations to the global markets, with wallets hosted by the exchange moving more than $3.84 billion since 2019.
Warren has vigorously opposed the Clarity Act, citing its failure to tackle key issues, including illicit finance and conflicts of interest arising from President Donald Trump and his family’s involvement in cryptocurrency ventures.
The Clarity Act—a proposed legislation designed to establish a regulatory framework for cryptocurrencies—cleared the Senate Banking Committee in May. Some Democratic Senators broke ranks to vote in favor alongside all Republican members.
The bill officially sits on the Senate Legislative Calendar as of this writing, making it eligible for a full floor vote.
Photo Courtesy: Bryan J. Scrafford on Shutterstock.com
