Nevada leaders are voicing strong opposition to the Digital Asset Market Clarity Act (CLARITY Act), legislation that would create broad exemptions for crypto platforms, including services like mixers and tumblers often used to obscure the source of funds.
Nevada Senator Catherine Cortez Masto (D-NV), a former Nevada Attorney General, voted against advancing the bill in the Senate Banking Committee. She released the following statement:
“It’s clear we need to pass market structure legislation, and I’ve worked for months with colleagues on both sides of the aisle to negotiate a bill that provides clear rules of the road for a growing industry. But the current version of the CLARITY Act undermines law enforcement’s ability to trace illicit finance and recover victims’ money, while at the same time creating a more challenging environment to prosecute criminals for knowingly transmitting illicit funds,” said Senator Cortez Masto. “It’s disappointing that my commonsense fixes discussed among stakeholders and supported by police and prosecutors nationwide weren’t adopted today. But I’m committed to finding solutions that allow us to take on bad actors – the criminals not the everyday coders – while giving the millions of U.S. crypto users the certainty they need.”
Senator Cortez Masto submitted for the record letters from the National Sheriffs’ Association, the National District Attorneys Association, the National Association of Assistant U.S. Attorneys, and the Major County Sheriffs of American, the Association of State Criminal Investigative Agencies, and the International Association of Chiefs of Police expressing that the current draft of the CLARITY Act does not adequately address concerns raised by law enforcement and prosecutors.
Investors for Transparency, a group dedicated to modernizing America’s financial markets while upholding essential investor safeguards and market integrity, issued the following statement on the CLARITY Act through Executive Director Jason Huntsberry:
“Strong safeguards and transparency aren’t obstacles to innovation. They’re the foundation for investor and market trust and what investors rightly expect from modern markets. Yet today, the Senate Banking Committee advanced a bill that codifies loopholes and exemptions for crypto special interests, weakens time-tested investor protections, and severely limits law enforcement’s ability to combat illicit finance. Criminal networks, drug cartels, and America’s enemies already exploit crypto to obscure illegal activity. This bill makes their work easier and law enforcement’s work harder. That’s not how American innovation thrives. The Senate must reject it and protect American investors.”
Even with Senator Cortez Masto’s nay vote, the CLARITY Act advanced out of committee and is now on the Senate Legislative Calendar. While negotiations continue on key issues such as stablecoin provisions and law enforcement concerns, the Senate may take up the bill for a floor vote in mid-July before the August recess. Nevada Senator Jacky Rosen’s (D-NV) position remains important, as the bill needs 60 votes to pass.
