Crypto firms still face full AML rules after CLARITY Act vote

The Senate rejected cloture on the Digital Asset Market Clarity Act, leaving the current Bank Secrecy Act obligations for U.S. crypto firms untouched. Companies must continue to meet existing customer identification, beneficial‑ownership, sanctions‑screening, AML controls and suspicious‑activity reporting requirements.

Bill outcome and next steps

On September 15 the Senate vote fell 49‑50, short of the 60 votes needed to open debate on H.R. 3633. The procedural defeat does not constitute a final vote on the legislation, and no new vote has been scheduled. Seven Democratic senators who opposed cloture said they remain open to bipartisan negotiations.

Continued compliance obligations

According to Fernando Castellanos, Head of Digital Assets at Prove Global, the bill would have clarified regulatory jurisdiction but would not have replaced the Bank Secrecy Act. Crypto firms must still file required reports when activity meets reporting thresholds and must maintain ongoing identity and risk checks beyond initial onboarding.

Bank expectations for connected controls

Sponsor banks assess crypto companies across the entire customer and transaction lifecycle, reviewing verification, beneficial‑ownership, sanctions screening, fraud prevention, wallet screening and transaction monitoring. They expect identity, wallet and transaction data to flow into a unified risk process, reducing blind spots and allowing continuous risk assessment.

Implications for self‑custodial wallets and DeFi

Verification can occur at regulated access points—such as fiat on‑ramps, off‑ramps or application interfaces—without placing personal data on‑chain. Firms may confirm that a user has passed an identity check or is not on a sanctions list without exposing underlying data, preserving privacy while meeting compliance duties.

AI agents and authorization

When AI agents open accounts or initiate transactions, institutions must identify the controlling human or entity, verify the specific action, and ensure the agent’s authority is limited, revocable and time‑bound. Continuous verification at the point of transaction is required, especially as platforms introduce machine‑directed finance tools.

Regulatory landscape

Under the proposed CLARITY framework, the SEC and CFTC would share oversight, with the CFTC supervising qualifying digital commodities and spot‑market intermediaries and the SEC retaining authority over securities. State money‑transmitter licensing, federal sanctions rules and other existing obligations would still apply where relevant.