U.S. Congress debates Crypto CLARITY Act amid industry and Senate split

The Digital Asset Market CLARITY Act, a proposed U.S. law to strengthen anti‑money‑laundering oversight of digital‑asset platforms, is drawing sharp criticism and strong support in Congress. Coinbase’s chief policy officer Faryar Shirzad said the bill would bring crypto firms under rules similar to banks, boost Treasury and FinCEN powers, and close regulatory gaps that enable illicit activity.

Senator Elizabeth Warren has countered, labeling the legislation a “ticket to sanctions evasion” and warning it could weaken U.S. sanctions enforcement. Other senators, including Ron Wyden and Cynthia Lummis, have urged lawmakers to retain developer‑protection provisions while supporting the act’s AML and security measures. The debate reflects broader concerns about how existing Treasury authority applies to crypto and whether new legislation should expand or restrict that framework.