Sen. Elizabeth Warren sharply criticized the CLARITY Act on Aug. 6, calling it "not good crypto legislation" and arguing it favors the crypto industry over consumer protection and national security. She reiterated support for federal crypto rules but said the current proposal is a "big giveaway" that could leave retail investors and the financial system vulnerable. Warren also warned the bill could enable illicit activity and suggested it might benefit former President Donald Trump's crypto interests. She urged lawmakers not to advance the measure until concerns about corruption, consumer safeguards and national security are addressed.
Warren Blasts CLARITY Act as Industry-Backed, Warns It Threatens Consumers and National Security
Elizabeth Warren Slams CLARITY Act as 'Written by the Crypto Industry' Says It's 'Not Good Crypto Legislation'
Sen. Elizabeth Warren (D-Mass.) renewed her sharp criticism of the CLARITY Act during a Capitol Hill interview on Aug. 6, arguing the bill prioritizes the cryptocurrency industry over consumer protections, national security and financial stability.
While Warren said she supports federal rules for digital assets and has drafted her own crypto legislation, she rejected the current proposal as industry-friendly and insufficiently protective of the public interest.
"Of course, we need crypto legislation," Warren said. "I've been saying this for a long time. I put together a crypto bill. But crypto legislation that has been written by the crypto industry to protect and advance the crypto industry… that's not good crypto legislation."
Warren called the CLARITY Act "a big giveaway to this zillion-dollar industry," saying it would primarily benefit crypto firms while leaving retail investors and the broader financial system exposed. She also suggested the legislation could benefit former President Donald Trump's crypto interests, asserting it might help him profit from the market.
Accusing the sector of trying to exert undue influence on lawmakers, Warren said, "Crypto thinks they can buy a Congress that will do what they want." She dismissed industry warnings that delaying legislation would simply push firms overseas, retorting, "I don't even know what that means. You mean that they will do their money laundering overseas?"
The senator added that, in her view, law enforcement officials oppose the bill because it could broaden avenues for illicit activity, including money laundering, drug trafficking, human trafficking and the financing of terrorism.
With the Senate still debating a related market-structure package ahead of the August recess, Warren said she has seen no evidence that outstanding concerns — corruption, consumer protection, national security and economic risk — have been resolved. "Until you solve those problems, I just don't see how anyone, Democrat or Republican, moves forward on this bill," she said.
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