White House Meets Law Enforcement to Resolve Clarity Act Dispute
Summary
- The White House has met with law enforcement groups opposed to the Clarity Act in an effort to narrow differences over the bill.
- The main issue is Section 604 of the Blockchain Regulatory Certainty Act (BRCA), which says developers should not be treated as money transmitters.
- The industry views it as a key legal safeguard for DeFi development, while some groups say it could create overly broad exemptions for mixers, tumblers and activities covered by the Bank Secrecy Act (BSA).
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The White House has met with law enforcement groups opposed to the Clarity Act in an effort to narrow differences over the legislation.
CoinDesk reported on June 29 that the meeting was arranged to address concerns about provisions targeting illicit finance, including money laundering. The central issue is Section 604 of the Clarity Act, known as the Blockchain Regulatory Certainty Act, or BRCA.
The provision says developers who create blockchain software, but do not directly operate or control it, should not be treated as money transmitters. The crypto industry views that as a key legal safeguard for DeFi development.
Some groups, including the National Sheriffs' Association, argue the measure could provide overly broad exemptions for mixers, tumblers and DeFi services. They say that while some developers are not subject to regulation, many engage in activities covered by the Bank Secrecy Act, or BSA.
Patrick Witt, executive director of the White House crypto council, is also continuing talks with stakeholders including law enforcement agencies and Wall Street financial firms as he works to secure Senate passage of the Clarity Act.
JH Kim
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