- Senator Lummis frames the CLARITY Act as protection against anti-crypto leadership.
- Industry figures warn bill grants banks control and enables warrantless monitoring.
- Critics characterize legislation as the nationalization of the decentralized finance sector.
Senator Cynthia Lummis has urged passage of the CLARITY Act, positioning the legislation as protection against regulatory hostility toward digital assets. The Wyoming Republican posted on X that the Biden administration spent four years attempting to remove the industry through regulatory warfare. Lummis argued the CLARITY Act establishes protections that anti-digital asset leaders like Elizabeth Warren cannot reverse.
“Let’s get this done before it’s too late,” Lummis stated, framing the legislation as time-sensitive given political dynamics. The senator chairs the Senate Banking Digital Assets Subcommittee and has promoted cryptocurrency-friendly policy frameworks throughout her tenure.
Industry Voices Raise Concerns About Bank Control
David Gokhshtein, founder of Gokhshtein Media and Gemini partner, opposed the current bill version. “We should absolutely NOT pass the Clarity Act in its current form. It’s nothing like what was originally presented,” Gokhshtein posted. He warned that the legislation hands banks additional control while harming retail participants.
Pierre Rochard, CEO of The Bitcoin Bond Company, characterized the bill as containing three compromise elements: Bitcoin receives tax exemption, stablecoins can pay yield, and banks receive bailouts during future crises. “Win, win, win,” Rochard stated with apparent sarcasm about the framework.
Paul Barron raised extensive criticism of the CLARITY Act. He shared specific concerns, including warrantless search provisions for “real-time monitoring” of transactions bypassing Fourth Amendment protections. Barron stated Treasury’s “Special Measures” authority allows asset freezing based on risk assessment rather than criminal activity.
Privacy and Centralization Concerns Dominate Criticism
Barron warned that the legislation extends Bank Secrecy Act requirements to non-custodial wallets, removing privacy equivalent to cash transactions. Global data sharing mandates with foreign central banks create citizen risk, according to his analysis. “Privacy is a human right, not a crime. Kill the bill,” Barron concluded.
Vandell, co-founder of Black Swan Capitalist, called the CLARITY Act cryptocurrency nationalization disguised as consumer protection. “I call it the final handover of decentralized finance to the same banks that nearly broke the world in 2008,” Vandell posted.
He argued the bill protects incumbent financial institutions from disruption rather than protecting investors. “CLARITY simply means that the old money finally figured out how to own the new money, legally and forever, which was the plan from day one,” Vandell stated.
Related: SEC CFTC will Hold Harmonization Event for Crypto Regulation
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