A new political clash over U.S. crypto regulation erupted after former FTX CEO Sam Bankman-Fried publicly endorsed the proposed CLARITY Act, prompting sharp criticism from Senator Elizabeth Warren.
Bankman-Fried posted on X that: “The CLARITY Act will be a huge milestone for crypto and a huge achievement for Donald Trump.” He added that he had previously supported “a similar bill to get crypto out of Gensler’s hands.”
His endorsement immediately triggered a response from Warren.
Senator Warren referred to Bankman-Fried as the fraudster who stole at least $8 billion from customers using his crypto exchange. She added: “That should set off alarm bells.”
Warren said that lawmakers must prioritize public protection, stating: “Any crypto market structure bill must protect investors, our financial system, and American taxpayers.”
Her comments also show the ongoing Democratic concerns that new crypto legislation could weaken regulatory oversight.
In his statement, Bankman-Fried referenced a 2023 letter from House Financial Services leaders that questioned the timing of enforcement actions taken by the Securities and Exchange Commission and the Department of Justice before his arrest.
The letter said that he was arrested the night before he was scheduled to testify before Congress, raising questions about coordination between agencies.
At the time, lawmakers wrote that: “The timing of the charges and his arrest raise serious questions about the SEC’s process and cooperation with the Department of Justice.”
However, the letter did not dispute the substance of the charges brought against him.
(adsbygoogle = window.adsbygoogle || []).push({});Despite the controversy, the CLARITY Act appears to be gaining political traction.
President Donald Trump has reportedly made the bill a top legislative priority, and some reports say it could move toward passage in the coming weeks.
Industry leaders are also expressing hopes. Ripple CEO Brad Garlinghouse recently said he sees a “90% chance” the bill passes by the end of April, arguing that regulatory uncertainty has “weighed on innovation for years.”
Related: Trump Claims Portfolios Are ‘Way Up,’ But What About Crypto?
