Lummis Cites 16 Safeguards in Clash With Warren Over Crypto Bill

Senator Elizabeth Warren's assertion that loopholes in the Clarity Act will lead to illicit finance is fundamentally incorrect...

Written by: Arslan Butt • Thursday, July 2, 2026 • 3 min read

• Last updated: Thursday, July 2, 2026

Quick overview

Senator Cynthia Lummis defended the Clarity Act against Senator Elizabeth Warren's claims, stating it includes over 16 safeguards against illicit finance.
Warren argues that the bill could worsen illicit finance risks and calls for stronger ethics rules, particularly concerning Donald Trump's crypto profits.
Lummis emphasized that the Clarity Act treats crypto activities like banks under existing financial regulations and allows regulators to impose sanctions.
The bill faces significant challenges in Congress, with a low likelihood of passing before the August adjournment due to various political and industry opposition.

Senator Elizabeth Warren’s assertion that loopholes in the Clarity Act will lead to illicit finance is fundamentally incorrect, and the bill actually has more than 16 safeguards against money laundering and such risks, said Senator Cynthia Lummis in a post Monday. Monday’s dispute between Lummis and Warren is merely the latest indication of how contentious the bill remains as supporters look to move it out of Congress before the Senate adjourns for the year in August.

The Clarity Act should not be used to allow criminals, including those in places such as Iran, to transfer hundreds of millions of dollars in crypto networks, which happened as much as $3.84 billion worth of money went through Iran-linked CoinEx exchange. Warren said that “as written, Clarity Act would make illicit finance risks significantly worse,” arguing that Congress needs to strengthen standards that already exist rather than weaken them. She also referenced recent news involving the disclosure by President Donald Trump that he and his family made a $1.4 billion crypto-related profit, which she tied to her call to strengthen ethics rules in the Clarity Act. The bill must clearly prevent Trump from continuing to profit from the crypto industry in this fashion, which is one of Warren’s primary concerns about the bill’s current text.

Lummis Points to Specific Bill Provisions

Lummis argued that there are at least 16 anti-illicit finance safeguards in the Clarity Act, not loopholes, and accused Warren of baseless attacks. The Lummis reply was peppered with sections of the Clarity Act she said demonstrate that her claims were grounded in facts, not general claims:

🚨BREAKING: Senator Lummis fires back at Elizabeth Warren, defending the Clarity Act against criticisms, saying it has 16+ illicit finance safeguards, not loopholes. pic.twitter.com/cs9EJ4dnD1

— Pulse Alpha (@pulsealpha_) July 2, 2026

Section 201 would require crypto activities and services to be treated like banks under the Bank Secrecy Act and Anti-Money Laundering rules
section 303 would give regulators the authority to enact new sanctions, for example in the case of a place such as Iran, that have become connected to illicit finance
section 305 would provide for exchanges to freeze suspicious transactions on the platform

Lummis said the disagreement here is all a question of transparency, urging the Clarity Act’s critics to “be up front about the fact you oppose crypto in favor of financial secrecy” rather than making false claims about loopholes. The Lummis post concluded by sharing where in the Clarity Act’s text she was citing for support.

Bill Faces Major Challenges and Delays

The prospect of the Clarity Act moving out of Congress this summer became dimmer Monday. The prospect is further dimmer with a number of forces working against the bill moving in time for an August adjournment, including an early Senate departure, a lack of support from traditional banking industry groups, and calls from Democrats for more robust ethics rules. Some of the latter groups remain wary of how stablecoins will produce yield in the Clarity Act bill, which has been one of the bill’s biggest hurdles to gaining industry support.

The Clarity Act, a landmark crypto legislation proposal, would make clear the roles of the SEC and CFTC, include a suite of measures to protect investors and consumers, and ensure the U.S. remains a center for crypto innovation. However, as it currently stands, the likelihood of the bill passing this Congress stands at 39% on betting platform Polymarket, in part because the Senate is currently extremely busy, and also in light of Trump’s recent disclosures about his $1.4 billion crypto-related windfall. The Clarity Act would still need 60 votes to move out of the chamber as it stands. Democrats still oppose the Clarity Act’s language on finance and ethics, and it is unclear at this point when it will move to a vote on the Senate.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.