Sen. Elizabeth Warren (D-Mass.) said the Senate should not move forward with the Digital Asset Market CLARITY Act until lawmakers address what she described as unresolved concerns around corruption, consumer protection and national security.
Speaking in an interview with Forbes on Wednesday, Warren said she supports establishing a regulatory framework for digital assets but argued the current proposal does not adequately protect consumers or the broader financial system.
She said, “As far as I’ve heard, they’ve still not solved the problem of corruption, of consumer protection, of national security, or protecting our economy. And until you solve those problems, I just don’t see how anyone, Democrat or Republican, moves forward on this bill.”
Her remarks come as bipartisan negotiations continue ahead of a possible Senate procedural vote on the legislation before the August recess. Democratic concerns over ethics provisions, consumer protections and anti-money laundering safeguards remain central to ongoing discussions and could influence the bill’s path forward.
Warren says crypto legislation is needed, but not the current bill
Asked whether changes to the CLARITY Act could make it acceptable, Warren responded that she has long supported crypto legislation but believes the current proposal favors industry interests over public protections. She argued legislation should focus on protecting retail investors, safeguarding retirement savings and ensuring government officials cannot benefit from conflicts of interest involving digital assets.
She also criticized what she characterized as the crypto industry’s influence over the legislative process, saying regulation should be written with consumer and national interests as the priority.
When asked whether the Senate could approve the bill before lawmakers leave for the August recess, Warren said she has not seen evidence that negotiators have resolved the issues she considers most important. According to Warren, concerns surrounding corruption, consumer protection, national security and broader economic safeguards remain unresolved. She said she does not believe lawmakers from either party should advance the legislation until those issues are addressed.
Senate keeps negotiations open as industry debate continues
Warren’s comments came as Senate negotiations entered another critical phase after Majority Leader John Thune opted not to file cloture, extending bipartisan talks on the CLARITY Act rather than beginning the procedural path toward a floor vote.
According to reports, Republican and Democratic staff have held multiple meetings over the past 24 hours to resolve outstanding issues before the August recess, including ethics provisions that remain under negotiation.
The debate has also drawn renewed industry attention. Coinbase CEO Brian Armstrong rejected claims that the bill would harm community banks, arguing there is little evidence to support those concerns.
His comments came after Sen. Josh Hawley (R-Mo.) said he would oppose the legislation without changes, citing warnings from community banks and agricultural groups in Missouri that stablecoin-related provisions could shift deposits away from smaller lenders.
Warren dismisses concerns about crypto firms leaving the U.S.
Responding to questions about whether delays could push the crypto industry overseas, Warren rejected the premise that lawmakers should rush legislation to retain digital asset businesses.
Instead, she argued the government’s responsibility is to protect consumers, strengthen law enforcement tools against illicit finance and prevent public officials from improperly benefiting from the crypto sector. Warren also claimed the current legislation could weaken efforts to combat money laundering, drug trafficking, human trafficking and terrorism financing, arguing stronger enforcement measures are necessary before Congress approves a market structure framework.
Her remarks contrast with supporters of the CLARITY Act, who argue the legislation would establish clearer federal rules for digital asset markets and provide greater regulatory certainty for the industry.
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