Lummis defends Clarity Act against criticism

• Senator Cynthia Lummis said the Clarity Act includes more than 16 safeguards to combat illicit finance.
• The defence came after Senator Elizabeth Warren argued the bill could weaken anti-money laundering standards.
• The bill faces a limited Senate timetable, while prediction markets and analysts have lowered expectations for its passage this year.

Senator Cynthia Lummis defended the Clarity Act against criticism from Senator Elizabeth Warren, saying the digital asset legislation contains more than 16 provisions designed to strengthen anti-money laundering and sanctions enforcement.

Lummis responded after Warren argued the bill could create loopholes for illicit finance, as the Senate faces a limited legislative window before its August recess to advance the proposal.

“If you don’t like crypto, then say it, but stop these baseless attacks,” said Senator Cynthia Lummis.

Lummis said Section 201 applies Bank Secrecy Act and anti-money laundering requirements to cryptocurrency businesses, Section 303 introduces additional sanctions targeting Iran and Section 305 allows cryptocurrency exchanges to freeze illicit funds, while critics continue to oppose Section 604, which provides a safe harbour for software developers.

The legislation requires 60 Senate votes, including support from at least seven Democrats, to progress this year, while following the latest developments Polymarket reduced the implied probability of the Clarity Act becoming law in 2026 to 39% from 64% in early June.

Law enforcement organisations and Catholic groups have also opposed parts of the bill, arguing that the developer safe harbour could reduce oversight of criminal financial activity involving digital assets.

Galaxy Research also lowered its estimated probability of the Clarity Act becoming law in 2026 to 50% from 60% on June 5, citing the narrowing Senate calendar before lawmakers begin their August recess.