CLARITY Act Hearing Live: AI Regulatory Sandbox Amendment Passes, Amendment to Block High-Risk Assets from Retirement Accounts Rejected

Odaily reported that the deliberation of the "Cryptocurrency Market Structure Act" (i.e., the CLARITY Act) has commenced in the U.S. Senate Banking Committee. As of now:

1. An amendment proposed by Senator Mike Rounds to create an AI regulatory sandbox was passed with 15 votes in favor and 9 against, indicating some bipartisan support, despite Senator Elizabeth Warren urging Democratic members to vote against it.

2. An amendment proposed by Elizabeth Warren, aimed at "preventing high-risk assets from entering retirement accounts," was rejected with 11 votes in favor and 13 against.

3. An amendment previously proposed by Senator Katie Britt of Alabama, which would have allowed certain retirement accounts to invest in pooled investment vehicles, was withdrawn before the vote.

It is reported that one of the most contentious amendments comes from Elizabeth Warren, concerning the strengthening of sanctions authority over cryptocurrency mixers. In her remarks, she referenced the U.S.-sanctioned mixing protocol Tornado Cash, stating it has been used to launder over $7 billion for criminal organizations and North Korean hacker groups, including over $450 million in related funds. Warren argued that the current bill does not grant the U.S. Treasury Department sufficient legal authority to isolate or restrict mixer services, potentially creating loopholes in anti-money laundering oversight. In response, Cynthia Lummis countered that the illegal financial activities are already covered in Parts Two and Three of the bill.