CLARITY Act · Bitcoin Magazine
Law Enforcement, Catholic Groups Send Letters to U.S. Government Warning CLARITY Act Would Create Crypto Crime Loopholes
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◎ Multiple-sources
Law enforcement groups and Catholic leaders warned that the CLARITY Act’s Section 604 could create regulatory and AML loopholes by exempting certain crypto developers and infrastructure providers from money transmitter rules.
Key facts
- The Senate Banking Committee cleared the bill 15-9 in May 2026, placing it on the Senate Legislative Calendar eligible for a floor vote
- Yesterday, Congress scheduled a July 17 hearing in New York on the CLARITY Act, a major crypto market structure bill that would divide oversight between the SEC and CFTC, as lawmakers push toward
- H.R. 3633, the Digital Asset Market Clarity Act, is the most significant piece of crypto legislation to advance in Congress in years
- The Trump administration has made the legislation a priority, and crypto industry groups have pushed to keep Section 604’s developer protections intact
Summary
A coalition of four major law enforcement organizations and a separate group of nearly 100 Catholic leaders sent letters Tuesday warning that a provision in the Digital Asset Market Clarity Act would weaken the oversight tools investigators and prosecutors rely on to combat financial crime. The law enforcement letter, addressed to Acting Attorney General Todd Blanche and Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, came from the National District Attorneys Association, the National Association of Assistant United States Attorneys, the International Association of Chiefs of Police, and the National Sheriffs’ Association. Together, the groups represent more than 70,000 prosecutors, sheriffs, chiefs of police, investigators, and other law enforcement professionals.