Coinbase Pushes Back on Warren, Says CLARITY Act Boosts National Security

Coinbase’s top policy executive has hit back at Senator Elizabeth Warren after she warned that the CLARITY Act could open the door to sanctions evasion. Chief Policy Officer Faryar Shirzad argued on X that the criticism has things backwards, saying unclear crypto rules are what actually leave the financial system exposed to bad actors. He said the bill would bring digital asset platforms under tighter oversight rather than looser rules.

Warren had posted on July 8 that the bill, as currently written, risks becoming a pathway for sanctions evasion. Her worry centers on whether the legislation weakens existing safeguards meant to catch illicit financial activity moving through crypto platforms.

What Coinbase Says the Bill Actually Does

Shirzad pointed to new Treasury powers for tracking and blocking sanctions evasion by foreign adversaries, along with extra funding for FinCEN to fight state backed cybercrime. He also noted the bill would let platforms freeze suspicious transactions when law enforcement asks.

Lummis Weighs In

Senator Cynthia Lummis backed Coinbase’s position, pointing to 16 built-in safeguards against illicit finance and warning that failing to pass the bill could delay clear crypto rules for years, possibly until 2030.