Coinbase pushes back on Warren as CLARITY Act vote nears

Share Link copied Coinbase Chief Policy Officer Faryar Shirzad has rejected claims that the CLARITY Act would weaken U.S. national security.

In a July 11 post on X, he said unclear crypto rules give bad actors room to operate outside firm regulatory boundaries. Shirzad argued that the bill would move more digital asset activity into a federal compliance system rather than leave it under fragmented oversight. Summary Shirzad says CLARITY Act applies bank-style AML rules and gives Treasury stronger enforcement tools nationwide.

Warren warns current language could preserve crypto loopholes that foreign actors use for sanctions evasion. Senate negotiators target a merged draft before recess while unresolved disputes still threaten final passage. Shirzad said the proposal would place crypto brokers, dealers, and exchanges under Bank Secrecy Act duties.

Those duties include anti-money laundering programs, customer checks, suspicious activity reports, and sanctions compliance. He also pointed to provisions that let platforms pause suspicious transfers when law enforcement requests action. “This isn’t a free pass for crypto,” he wrote, calling the proposal a strict security mandate.

You might also like: SBI bets $76M on EDX as institutional crypto race heats up Warren warns about sanctions evasion risks Senator Elizabeth Warren has taken the opposite position. She shared an article by former National Security Council Iran director Richard Nephew and wrote, “As currently drafted, the Clarity Act is a ticket to sanctions evasion.” Nephew argued that the bill could leave some decentralized finance participants outside clear Bank Secrecy Act duties and make enforcement harder.

The dispute centers on which crypto businesses must register, monitor transactions, and answer to federal agencies. Warren and other critics say exemptions for some non-custodial services could leave gaps that foreign governments, criminal groups, and sanctioned entities may use. A Senate Banking Committee minority advisory raised similar concerns.

Supporters say existing sanctions laws would remain in force while the bill adds new powers for the Treasury Department and FinCEN. Bill contains new anti-money laundering tools The Senate Banking Committee’s CLARITY Act fact sheet says the bill applies federal anti-money laundering and counterterrorism finance rules to centralized digital asset intermediaries. It also creates a Treasury power known as Special Measure 6.

That tool would let officials target foreign jurisdictions, institutions, or transaction types tied to major digital asset money laundering risks. The proposal would increase FinCEN funding, require risk controls at digital asset firms, and create a government-industry information-sharing program. It would also regulate crypto kiosks and require studies on mixers, illicit finance, cyber risks, and national security threats.

These measures support Shirzad’s case, while the debate over decentralized services supports Warren’s demand for tighter language. Senate faces a narrow legislative window The latest crypto.news coverage says Senate staff plan to release a merged CLARITY Act draft during the week of July 13.

The new text will combine work from the Banking and Agriculture committees. Negotiators have reportedly added more than 70 pages, including stronger consumer protections and changes requested during bipartisan talks. Senate leaders target possible floor action during the week of July 20, but several disputes remain open.

Lawmakers continue to negotiate ethics rules, stablecoin rewards, decentralized finance protections, and legal safeguards for software developers. Crypto.news reported that Senator Ron Wyden wants the final bill to retain protections for developers who do not control customer funds.

The House approved an earlier version in July 2025, while the Senate Banking Committee advanced its draft by a 15-9 vote in May 2026. Both chambers must approve matching text before the bill can reach the president. The Senate starts its August recess on August 7, leaving limited time for debate and amendments.

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