Summary
- The White House has met with law enforcement groups opposing the Clarity Act as it seeks to reconcile differences over the bill.
- The key issue, Section 604 of the Blockchain Regulatory Certainty Act (BRCA), is regarded as a critical legal safeguard for DeFi development.
- Groups including the National Sheriffs' Association said the provision could grant overly broad exemptions to mixers, tumblers and DeFi services.
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The White House has met with law enforcement groups that oppose the Clarity Act as it seeks to reconcile differences over the bill.
CoinDesk reported on June 29 that the meeting was arranged to address concerns about provisions targeting money laundering and other illicit finance. The central issue is Section 604 of the Clarity Act, the Blockchain Regulatory Certainty Act, or BRCA.
The provision says developers who create blockchain software would not be treated as money transmitters if they do not directly operate or control it. The industry regards it as a key legal safeguard for DeFi development.
Some groups, including the National Sheriffs' Association, are concerned the provision could grant overly broad exemptions to mixers, tumblers and DeFi services. They argue that while some developers are not subject to regulation, many others engage in activities covered by the Bank Secrecy Act, or BSA.
Meanwhile, Patrick Witt, executive director of the White House crypto council, is continuing consultations with law enforcement groups and Wall Street financial firms as he works to secure Senate passage of the Clarity Act.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.