Law Enforcement vs Crypto Industry:
The CLARITY Act fight is back
The National Sheriffs’ Association just sent Senate leaders Thune and Schumer another warning on the CLARITY Act.
Their concern: Section 604.
NSA argues it creates broad exemptions from KYC, AML, registration, and sanctions requirements for certain DeFi participants. They say it could let illicit actors exploit platforms designed to obscure transactions.
This is the 3rd letter. NSA first raised it May 13 to Senate Banking, then joined a coalition letter in June. Now they’re pushing again as the Senate recess deadline nears.
The Blockchain Association pushed back.
Policy Head Lindsay Fraser says the NSA’s position comes from a “fundamental misunderstanding.”
Industry argues Section 604 shields _non-custodial software developers_ — not the criminals.
Core dispute: Does protecting non-custodial devs open a loophole, or is it necessary to keep DeFi innovation legal in the US?
#CLARITYAct #Cryptoregulation #AML
The CLARITY Act fight is back
The National Sheriffs’ Association just sent Senate leaders Thune and Schumer another warning on the CLARITY Act.
Their concern: Section 604.
NSA argues it creates broad exemptions from KYC, AML, registration, and sanctions requirements for certain DeFi participants. They say it could let illicit actors exploit platforms designed to obscure transactions.
This is the 3rd letter. NSA first raised it May 13 to Senate Banking, then joined a coalition letter in June. Now they’re pushing again as the Senate recess deadline nears.
The Blockchain Association pushed back.
Policy Head Lindsay Fraser says the NSA’s position comes from a “fundamental misunderstanding.”
Industry argues Section 604 shields _non-custodial software developers_ — not the criminals.
Core dispute: Does protecting non-custodial devs open a loophole, or is it necessary to keep DeFi innovation legal in the US?
#CLARITYAct #Cryptoregulation #AML