Points of Focus

• Warren’s Tornado Cash AML amendment failed 11-13 at the CLARITY Act markup on May 14.
• The bill gives the Treasury no legal authority to isolate mixers, Warren argued, citing $7B in Tornado Cash laundering.
• The CLARITY Act advanced from committee, ending Warren’s three-year anti-crypto legislative campaign.

The Senate Banking Committee advanced the Digital Asset Market Clarity Act on May 14 after rejecting a series of amendments from Ranking Member Elizabeth Warren, whose three-year effort to impose bank-grade anti-money laundering requirements on crypto wallets, validators, and mixer services met its most comprehensive legislative defeat yet.

JUST IN: 🇺🇸 Senate Banking Committee schedules crypto Clarity Act vote for May 14 at 10:30 AM EST.

— Watcher.Guru (@WatcherGuru) May 8, 2026

The Tornado Cash amendment

Warren’s Tornado Cash amendment was the focal point. The GENIUS Act, enacted in June 2025, established the first US stablecoin framework but left unresolved what Warren called ‘the Tornado problem’: whether the Treasury holds legal authority to isolate mixer services from the financial system after sanctioning them. 

The US sanctioned Tornado Cash in August 2022 following evidence that the platform laundered more than $7 billion for criminals and foreign adversaries, including more than $450 million for the Lazarus Group, North Korea’s primary crypto theft unit. Warren argued the CLARITY Act, as written, fails to confirm that authority. The amendment failed 11-13.

🚨 JUST IN: TIM SCOTT EXPECTED TO REJECT OVER A DOZEN PROPOSED AMENDMENTS TO THE CRYPTO BILL

Per Politico, the amendments are being rejected over drafting errors – potentially clearing the way for Clarity Act approval. https://t.co/P2dkVlzMU1

— CryptosRus (@CryptosR_Us) May 14, 2026

A separate Warren amendment stripping sections 401, 402, and 403 governing bank digital asset activity also failed 11-13. Senator Chris Van Hollen proposed prohibiting senior government officials from having business ties to crypto firms, aimed at the Trump family’s World Liberty Financial operation. Warren introduced an amendment prohibiting political corruption in banking applications and presidential crypto token ownership. Both failed.

A three-year campaign

Warren’s anti-crypto legislative record is one of consistent ambition and consistent defeat. She introduced the Digital Asset Anti-Money Laundering Act in December 2022 with Senator Roger Marshall, reintroduced it in July 2023, and expanded its Senate coalition to 19 co-sponsors by December 2023. 

JUST IN: U.S. CLARITY Act Heads To Senate Banking Committee Vote On May 14.

After Months Of Delays, The Bill Is Finally Moving.
✅ House Already Passed It 294–134
✅ Stablecoin Yield Compromise Locked In
✅ Tim Scott Wants It Done Before Memorial Day
✅ White House Targets July… pic.twitter.com/Ei9OT1CRQB

— Crypto Patel (@CryptoPatel) May 9, 2026

Marshall withdrew from the bill in July 2024 after what he described as ‘tremendous’ industry and White House pressure, becoming the first co-sponsor to defect. No floor vote ever followed.

The Iran and terrorism framing

At every stage, Warren deployed the same framework: Tornado Cash laundering $7 billion, Iran earning revenue by validating transactions for sanctioned entities, North Korea funding 50% of its missile program through crypto theft, Hamas financing the October 7 attacks partly through digital assets. 

The Blockchain Association countered that her DAAMLA bill (of 2023) ‘would inadvertently hinder law enforcement and national security efforts by driving the majority of the digital asset industry overseas,’ a position co-signed by 80 former military and national security professionals.

The CLARITY Act cleared the committee and heads to the full Senate. Warren’s vote count on May 14 was 11, the same Democratic minority that has opposed crypto legislation at every procedural stage since 2023.