Elizabeth Warren backs crypto rules, rejects CLARITY Act
Senator Elizabeth Warren supports establishing federal rules for digital assets but has rejected the CLARITY Act in its current form, citing unresolved concerns over corruption, consumer protection, national security and financial stability. Warren says CLARITY Act falls short According to CoinDesk, Warren said the U.S. crypto industry needs a clear regulatory framework but argued that the current proposal does not adequately protect investors or the wider financial system. The Massachusetts Democrat identified several areas where she believes the legislation remains insufficient. These include safeguards against political corruption, protections for consumers and measures intended to limit national security and economic risks. Warren has also warned that poorly designed crypto legislation could weaken regulators and allow large digital asset companies to exploit gaps between federal agencies. Her opposition therefore focuses on the terms of the CLARITY Act rather than rejecting crypto regulation altogether. The bill seeks to establish clearer federal oversight of digital asset issuance, trading platforms and other market participants. It would also define how responsibilities are divided among agencies, including the Commodity Futures Trading Commission and the Securities and Exchange Commission. Supporters argue that those rules would reduce legal uncertainty for U.S. crypto businesses. Warren, however, maintains that regulatory clarity must not come at the expense