The post CLARITY Act Latest Update: Tillis Adds Fresh Problem, Coinbase Fires Back And Expert Calls Bill Dead appeared first on Coinpedia Fintech News
The Clarity Act was supposed to be heading toward a May markup with momentum behind it. Instead it spent the past 48 hours collecting new problems like a bill that has started to wonder if it actually wants to become law.
The latest arrived Tuesday when Senator Thom Tillis flagged concerns from law enforcement groups about a specific provision in the legislation.
However, senator Cynthia Lummis reacted to the news and said, “This isn’t a big new hurdle, and is something I’m working on now. I am committed to keeping protections for non-money transmitting developers safe without tying law enforcement’s hands to hold bad actors accountable.”
Coinbase’s CLO Came Out Swinging
Coinbase chief legal officer Paul Grewal did not wait for the dust to settle. He published a detailed thread pushing back on the entire premise that the Clarity Act weakens law enforcement, calling the suggestion flat wrong and backing it up with specifics.
Here is what Grewal says the bill actually does for law enforcement:
Expands Bank Secrecy Act coverage to digital asset brokers and exchanges, including full AML and sanctions compliance
Enhances seizure and forfeiture authorities specifically for digital assets
Creates designated law enforcement contacts at crypto kiosks nationwide
Establishes new information-sharing channels between the DOJ, Treasury, and the private sector
Forces crypto activity into US jurisdiction instead of letting it operate offshore beyond regulatory reach
“The alternative, an offshore crypto industry, gives law enforcement far fewer tools than what this framework delivers,” Grewal said.
What Happens if the Bill Dies
Legal commentator MetaLawMan laid out the scenario nobody wants to say out loud, and he said it clearly.
If the Clarity Act fails, here is what does and does not change:
The GENIUS Act stays as the governing stablecoin law
Crypto exchanges keep paying rewards on stablecoin holdings
Jamie Dimon’s predicted bank deposit flight either happens or it does not, with no legislative answer either way
The Trump family continues operating its crypto ventures without new restrictions
When asked directly whether he thinks the bill will pass, MetaLawMan did not reach for diplomatic language.
“My guess is no, it won’t pass. It should pass. It’s an embarrassment how dysfunctional our government has become. Kazakhstan has passed a legal framework for crypto, for goodness sakes.”