US Senate committee rejects DeFi AML amendment to CLARITY Act

The U.S. Senate Banking Committee has rejected a Democratic amendment to the CLARITY Act during the bill's markup session. The proposal sought to prevent money laundering using DeFi technology and establish liability for developers. Senator Chris Van Hollen argued that developers who intentionally facilitate illicit financial flows should be penalized. However, Senator Cynthia Lummis opposed the measure, stating that existing laws are sufficient to address the issue and that the amendment could negatively impact the technology industry.