Clarity Act Faces New Hurdles as Tillis Raises Law Enforcement Concerns; Crypto Platform CLO Defends Bill

Gate News message, April 29 — The Clarity Act, a proposed U.S. cryptocurrency regulatory framework originally scheduled for a May markup vote, has encountered fresh obstacles over the past 48 hours. On Tuesday (April 28), Senator Thom Tillis raised concerns from law enforcement groups regarding a specific provision in the legislation, casting doubt on the bill’s momentum.

Senator Cynthia Lummis responded swiftly to Tillis’s concerns, stating: “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.” Lummis indicated the issue was manageable and did not represent a fundamental flaw in the bill.

Paul Grewal, chief legal officer of a major crypto platform, published a detailed rebuttal to claims that the Clarity Act weakens law enforcement capabilities. Grewal outlined five specific ways the bill strengthens law enforcement: expanding Bank Secrecy Act coverage to digital asset brokers and exchanges with full AML and sanctions compliance; enhancing seizure and forfeiture authorities for digital assets; creating designated law enforcement contacts at crypto kiosks nationwide; establishing new information-sharing channels between the DOJ, Treasury, and the private sector; and forcing crypto activity into U.S. jurisdiction rather than allowing it to operate offshore. “The alternative, an offshore crypto industry, gives law enforcement far fewer tools than what this framework delivers,” Grewal said.

Legal commentator MetaLawMan offered a stark assessment of the bill’s prospects. He outlined the scenario if the Clarity Act fails: the GENIUS Act remains the governing stablecoin law; crypto exchanges continue paying rewards on stablecoin holdings; Jamie Dimon’s predicted bank deposit flight either occurs or does not, with no legislative remedy; and the Trump family continues operating its crypto ventures without new restrictions. When asked directly about the bill’s chances of passage, MetaLawMan said: “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.”