Crypto critics accuse Warren of weakening Clarity Act in favour of banks

Members of the crypto community have accused Senator Elizabeth Warren of undermining the Digital Asset Market Clarity Act through extensive amendments.

Critics said Warren attached 38 amendments that they argue would strengthen traditional banks’ influence over digital assets.

Alex Thorn said the amendments would remove developer protections, expand sanctions and AML obligations, and limit tokenisation pathways, Alex Thorn said.

Crypto supporters reacted angrily online, accusing Warren of presenting herself as pro-consumer while reinforcing banking interests.

Several commentators said the proposed changes would increase government oversight and compliance burdens across decentralised finance.

Critics also argued the amendments could weaken the SEC’s ability to permit tokenisation under existing frameworks.

Warren has previously described herself as building an “Anti-Crypto Army,” a stance frequently cited by her opponents.

Some industry figures warned the approach could drive crypto innovation offshore under the banner of consumer protection.

Warren’s past support for a central bank digital currency has also resurfaced amid renewed criticism.

The backlash reflects broader unease within the crypto sector over whether the Clarity Act will favour TradFi over innovation.

Industry participants said the central concern is whether final legislation preserves space for self-custody, open development, and innovation.