Warren Says the CLARITY Act Will 'Blow Up the Economy' as Senate Panel Votes 15-9 to Advance Bill

The Senate Banking Committee advanced the CLARITY Act 15-9 on May 14, 2026, sending the 309-page bill to the full Senate. The measure aims to draw clearer regulatory lines between the SEC and the CFTC for digital assets. Warren proposed 44 amendments, none of which passed, and opposed the bill on three main claims: it would weaken securities laws protecting investors since 1929, it would let companies avoid SEC regulation by moving on-chain, and it would enable fraud against consumers using crypto. A poll found 52% of Americans support the bill, and it now needs 60 Senate votes to pass. Supporters argued the bill’s decentralization test requires defined, verifiable criteria before shifting jurisdiction to the CFTC.

"Warren arrived at the May 14 markup armed with 44 proposed amendments, none of which passed. Her objections centered on three claims, i.e., that the bill would blow a hole in our securities laws that have protected investors since 1929, that it allows companies to opt out of SEC regulation simply by going onchain, and that it declares open season on defrauding American consumers who use crypto. In additional remarks that drew immediate industry pushback, Warren also said, This bill is just not ready for prime time. It pushes more of the economy into crypto. It will blow up the economy."

"For starters, the proposed decentralization test in the bill (which determines whether a digital asset qualifies as a security or a commodity) is not a blanket opt-out from SEC oversight but requires companies to meet defined, verifiable criteria before shifting regulatory jurisdiction to the CFTC. Supporters of the bill pushed back, arguing Warren's framing mischaracterizes the legislation. They said the bill is designed to create clearer regulatory lines rather than remove protections."

"The CLARITY Act (H.R. 3633) is a 309-page bipartisan bill designed to draw clear regulatory lines between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for overseeing digital assets. Last week, Robinhood CEO Vlad Tenev said the U.S. is very close to passing the bill, adding that its passage would be a foundational step toward legitimizing the crypto industry under U.S. financial law. Despite Warren's opposition, the committee voted 15-9 along largely party lines to send the CLARITY Act to the full Senate."

"A poll found 52% of Americans support the CLARITY Act, which now needs 60 Senate votes to clear the full chamber. The Senate Banking Committee advanced the CLARITY Act 15-9 on May 14, 2026, despite Warren's 44 amendments and sharp opposition. Warren warned the 309-page bill would blow up the economy and blow a hole in investor protections dating to 1929."

Read at news.bitcoin.com