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

Odaily reported that the deliberation of the Crypto 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 passed with 15 votes in favor and 9 against, showing some bipartisan support, despite Senator Elizabeth Warren calling on Democratic lawmakers 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Katie Britt of Alabama, which would allow certain retirement accounts to invest in pooled investment vehicles, was withdrawn before the vote.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 comes from Elizabeth Warren, concerning the strengthening of sanction authority over crypto mixers. In her remarks, she mentioned Tornado Cash, a sanctioned mixing protocol, stating it was used to launder over $7 billion for criminal organizations and North Korean hacker groups, including more than $450 million in related funds. Warren stated that the current bill does not grant the U.S. Treasury sufficient legal authority to isolate or restrict mixer services, potentially creating loopholes in anti-money laundering regulations. In response, Cynthia Lummis countered that sections two and three of the bill already cover relevant content related to illicit financial activities.