Law Enforcement Claims CLARITY Act Helps Criminals. Industry Says They're Wrong.
U.S. law enforcement groups, including the National Sheriffs' Association, have repeatedly warned that the CLARITY Act's Section 604 (the "Blockchain Regulatory Certainty Act") creates broad exemptions from anti-money laundering (AML) and "know your customer" (KYC) rules for certain decentralized finance (DeFi) participants. They argue this could allow criminals, human traffickers, and sanctions evaders to exploit platforms designed to obscure digital asset transactions.
The industry, represented by the Blockchain Association, strongly disagrees. Its director of strategy stated that Section 604 simply prevents the misclassification of developers of non-custodial software as money transmitters, provided they do not control user assets. She asserted the provision does not grant criminals immunity or hinder prosecution for financial crimes.
This dispute has become a central issue as the Senate prepares for a vote. The law enforcement community is not unified, however. One major Black law enforcement group has endorsed the bill, and another sheriffs' organization shifted from opposing to a neutral stance on Section 604 after negotiations clarified its implementation. The outcome of this debate over developer liability is seen as critical to the bill's fate.
cryptonews.ruDün 11:46
