The battle over the CLARITY Act is intensifying as lawmakers continue to debate how the U.S. should regulate the crypto industry. Senator Cynthia Lummis has defended the bill after Senator Elizabeth Warren claimed it would create new loopholes that could help America’s adversaries move billions through cryptocurrency.
Lummis Says the Bill Strengthens Crypto Rules
In a post on X, Lummis rejected Warren’s criticism, arguing that the CLARITY Act includes more than 16 safeguards against illicit finance.
She pointed to provisions that apply Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) rules to crypto, introduce new sanctions targeting Iran, and allow crypto exchanges to freeze suspicious funds.
“If you don’t like crypto, then say it, but stop these baseless attacks,” Lummis wrote, accusing Warren of misrepresenting the legislation.
Warren, however, maintained that Congress should tighten crypto regulations instead of passing a bill she says could make financial crime harder to stop.
Can the CLARITY Act Pass?
While support for the legislation remains strong, its path through the Senate is becoming more complicated.
Galaxy Research has lowered the odds of the CLARITY Act passing this year from 60% to 50%, while prediction platform Polymarket currently estimates its chances at 44%.
The bill is also competing for limited Senate floor time after President Donald Trump delayed signing a bipartisan housing bill until Congress considers the separate SAVE Act.
Even if all 53 Senate Republicans support the legislation, the party will likely need at least seven Democratic votes. Some Democrats who previously backed the bill in committee have already said their final support depends on resolving several policy and ethics concerns.
Global Crypto Rules Are Moving Faster
As the U.S. continues debating the CLARITY Act, other major markets are already rolling out their own crypto frameworks.
Taiwan recently approved its Virtual Asset Service Act, the UK’s Financial Conduct Authority (FCA) finalized its crypto framework, and the European Union’s MiCA rules officially entered full enforcement on July 1.
Despite the uncertainty, several U.S. officials remain optimistic. SEC Commissioner Hester Peirce recently said she expects the CLARITY Act to pass “this summer,” while Senator Tim Scott and White House digital assets adviser Patrick Witt have also signaled that July could be a major month for crypto legislation.
With regulatory competition growing worldwide, the next few weeks could determine whether the U.S. finally moves forward with long-awaited crypto market rules.
