A fierce exchange between Senators Elizabeth Warren and Cynthia Lummis has erupted over the CLARITY Act after blockchain intelligence revealed that wallets linked to Iran’s central bank moved more than $3.84 billion through crypto exchange CoinEx since 2019. Warren argues the current bill would weaken anti-money laundering controls, while Lummis insists it contains 16+ illicit finance safeguards.
Warren pointed to the volume of Iran-connected flows and the $1.5 billion Bybit hack by North Korean hackers, saying adversaries are exploiting crypto. She warned the CLARITY Act, as written, would “make this problem worse” and called for stronger standards. Lummis countered that the bill applies Bank Secrecy Act and AML rules to digital commodity brokers and exchanges (Section 201), gives Treasury authority over foreign digital asset money laundering risks (Section 303), and allows temporary transaction holds (Section 305). “If you don’t like crypto, then say it, but stop these baseless attacks,” she tweeted.
CoinEx founder Haipo Yang acknowledged widespread Iranian use but denied any government relationship. The exchange is reviewing transactions linked to the Bybit hack and has begun blocking Iranian IPs.
The debate is further complicated by President Donald Trump’s $1.4 billion in crypto assets and income, which critics call a conflict of interest. Polymarket odds for the CLARITY Act passing this year have fallen below 40%, as ethics disputes and election-year politics slow momentum. Meanwhile, Wall Street firms continue to push for regulatory clarity, and law enforcement groups like the National Sheriffs’ Association are meeting to address gaps in crypto oversight.
