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

Odaily Odaily reports 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. The AI regulatory sandbox amendment proposed by Senator Mike Rounds was passed with 15 votes in favor and 9 against, indicating some bipartisan support, despite Senator Elizabeth Warren urging Democratic lawmakers to vote against it.

2. The amendment proposed by Elizabeth Warren, aimed at "preventing high-risk assets from entering retirement accounts," was defeated 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Britt of Alabama, which would have allowed certain retirement accounts to invest in pooled investment vehicles, was withdrawn before the vote.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 understood that one of the most controversial amendments currently is from Elizabeth Warren, which involves strengthening 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 hacking groups, including more than $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 regulations. In response, Cynthia Lummis countered that Sections 2 and 3 of the bill already cover content related to illicit financial activities.