Warren seeks new crypto bill after rejecting Clarity Act

Sen. Elizabeth Warren, a Democrat from Massachusetts, stated Tuesday that she does not back the existing Clarity Act and plans to push for fresh cryptocurrency legislation. The Block reports that Warren told reporters the current draft offers Washington's "first chance for meaningful crypto regulation" but noted that any final version needs strict oversight of officials' digital asset holdings, national security safeguards, and stronger measures against illicit finance and terrorism.

If Democrats secure the Senate in November, Warren’s position could prove decisive. Prediction market Kalshi assigns the party a 52% probability of winning the chamber, which would put Warren in the lead role for the Senate Banking Committee. She said she would work with Democrats, Republicans, and industry figures to craft a bill that protects national security and the economy while reducing corruption.

Stalled progress centers on ethics provisions regarding President Donald Trump’s crypto assets. The existing rules are viewed as unenforceable because the Justice Department would determine if legal action is taken against the president. A compromise requiring officials with significant crypto interests to divest was rejected by Sen. Cynthia Lummis, a Republican.

Kevin Wysocki, Head of Policy at Anchorage Digital, indicated that the 60 votes required for a procedural vote can be obtained. Wysocki added that the situation will develop over time and expressed hope that such procedural maneuvers will not be necessary to pass the bill.