Senator Elizabeth Warren launched a sweeping attack on the U.S. digital asset market structure bill during a Senate Banking Committee hearing on May 14, calling it an economic threat. The committee still voted 15-9 to advance the bill to the full Senate floor.
Key Takeaways:
Warren’s 44 Amendments and Three Core Objections
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.”
Supporters of the bill pushed back, arguing Warren’s framing mischaracterizes the legislation. 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.
The Vote, the Numbers, and What Comes Next
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 floor. A separate poll cited by Bitcoin.com News found 52% of Americans support the legislation, with 70% saying the U.S. should already have passed crypto market structure rules.
Markets registered the advance positively with digital asset funds pulling in $857.9 million in net inflows earlier, reflecting investor confidence that even contested regulation is better for long-term market health than continued uncertainty. The bill now faces a 60-vote threshold on the Senate floor, meaning it will need some bipartisan support beyond the committee tally to pass.