Sen. Elizabeth Warren called the CLARITY Act “a ticket to sanctions evasion,” intensifying the Democratic attack on the crypto market-structure bill as Senate talks continue.
The Massachusetts senator’s criticism targets the current draft of H.R. 3633, the Digital Asset Market Clarity Act of 2025. The bill would divide oversight between the SEC and CFTC, create federal registration paths for crypto intermediaries and set rules for digital commodities, trading platforms, brokers and dealers.
Warren has argued that the bill’s treatment of decentralized finance and crypto intermediaries could leave gaps for sanctioned actors. The line puts national security back at the center of a debate that has also covered developer protections, exchange registration, token classification and the CFTC’s expanded role over digital commodity markets.
Sanctions Language Drives The Fight
FinCEN issued a May alert on Iran-linked finance networks using digital asset infrastructure, front companies, shadow banking channels and financial facilitators to move funds around sanctions controls.
That alert sits behind the Senate fight over how far crypto legislation should go on AML coverage, sanctions screening, foreign platforms, mixers, self-custody tools and DeFi activity. Warren’s position is that the draft weakens those controls at the same time sanctioned regimes are using digital assets as part of broader evasion networks.
Republican supporters have pushed back by pointing to the bill’s enforcement language. Sen. Cynthia Lummis has defended CLARITY Act safeguards tied to AML obligations, sanctions compliance, suspicious-activity reporting and temporary holds on transactions flagged by regulated intermediaries.
The dispute has also split the bill’s crypto-policy framing. Industry supporters want clearer jurisdictional lines after years of SEC enforcement actions and overlapping agency claims. Critics want tighter illicit-finance language before Congress gives crypto firms a new federal market-structure regime.
Senate Clock Moves Toward August
The Senate Banking Committee advanced CLARITY in a 15-9 vote on May 14, moving the bill out of committee without making it law. The measure still needs full Senate passage, coordination with Senate Agriculture language, House agreement if the text changes and a presidential signature.
The bill already missed its July 4 target while lawmakers worked through market-structure language, DeFi carveouts, enforcement provisions and Senate calendar pressure.
The Senate calendar lists a state work period from Aug. 10 to Sept. 11.
