Senate Judiciary flags DeFi oversight ‘gaps’ in U.S. crypto bill
The Senate Judiciary Committee, led by Chuck Grassley and Dick Durbin, has raised concerns about the CLARITY Act, a broader crypto market structure bill. They warn that exemptions in the bill could allow DeFi software developers to avoid financial licensing requirements for money-transmitting businesses, potentially weakening federal criminal code enforcement tools used by the Department of Justice. The Judiciary Committee argues it was not consulted on these changes and urged the Senate Banking Committee to reject the exemptions, citing risks such as enabling money laundering.
In response, the Banking Committee defended the protections for developers, stating the provisions fall under its jurisdiction and aim to prevent unfair prosecution of those without control over funds or transactions. The bill faces further uncertainty after Coinbase withdrew support, and the White House reportedly warned the exchange to return to negotiations or risk losing backing. The future of the legislation remains unclear.
ambcrypto01/17 10:02
