Anti-Trafficking Group Opposes Clarity Act, Warns of Weaker Developer Liability

An anti-trafficking group has urged lawmakers to revise the Clarity Act, arguing that the bill could weaken developers' legal liability.

CoinDesk reported on June 27 that Katie Boller Gosewisch, executive director of the Alliance to End Human Trafficking, raised concerns about Section 604 of the Clarity Act. The provision says developers who do not directly control user funds are not money transmitters.

Gosewisch said the provision could give developers of platforms used for trafficking-related payments grounds to avoid accountability. She added that lawmakers should consider the possibility that criminal organizations could later try to use the clause to evade criminal liability, regardless of the bill's legislative intent.

The Alliance to End Human Trafficking and Catholic charities sent a letter laying out those concerns to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer, the report said, asking them to reconsider the bill.