CLARITY Act Fail Leaves Crypto Firms Under Same AML Rules

The Senate's failure to advance the CLARITY Act has left existing anti-money laundering (AML) rules for crypto businesses unchanged.

According to Prove Global Head of Digital Assets and Sponsor Banks Fernando Castellanos, the bill mainly dealt with market structure and would not have replaced the Bank Secrecy Act requirements already imposed on covered crypto businesses.

Customer identification, beneficial ownership checks, sanctions screening, AML controls, and suspicious activity monitoring remain in force. Crypto companies must also continue filing required reports when their systems detect activity that meets applicable reporting standards.