Senate Rejects Clarity Act, Leaving Crypto Firms with Existing AML Obligations

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

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

The CLARITY Act aimed to clarify which federal regulator oversees certain assets and activities, but its failure to advance means firms must continue applying existing law while Congress considers how decentralized services fit within U.S. financial rules.