Blockchain Association Pushes Back on Sheriffs’ Clarity Act Claims
The Blockchain Association has rejected claims from the National Sheriffs’ Association that the Clarity Act would weaken protections against money laundering and other financial crimes.
In a letter to Senate leaders, the crypto industry group said the sheriffs’ organization had misinterpreted provisions covering decentralized finance. It argued that the bill would impose strict obligations on crypto intermediaries while preserving a distinction between financial service providers and developers of non-custodial software.
The dispute centers on the Blockchain Regulatory Certainty Act, a section that would clarify that non-custodial developers are not money transmitters. The sheriffs’ group has called for the provision to be removed or narrowed, warning that DeFi protocols could receive overly broad exemptions.
The Blockchain Association said entities that control supposedly decentralized protocols would still be subject to regulation and could not avoid legal obligations simply by describing themselves as decentralized.
The debate comes during a pivotal week for the Clarity Act. Senate Majority Leader John Thune has said he still expects an initial procedural vote before lawmakers leave for the August recess, although no date has been announced.
Negotiations also remain stalled over ethics provisions addressing President Donald Trump’s crypto interests. New bipartisan language was sent to the White House last week, but no agreement had been reached as of Monday.
The Blockchain Association has rejected claims from the National Sheriffs’ Association that the Clarity Act would weaken protections against money laundering and other financial crimes.
In a letter to Senate leaders, the crypto industry group said the sheriffs’ organization had misinterpreted provisions covering decentralized finance. It argued that the bill would impose strict obligations on crypto intermediaries while preserving a distinction between financial service providers and developers of non-custodial software.
The dispute centers on the Blockchain Regulatory Certainty Act, a section that would clarify that non-custodial developers are not money transmitters. The sheriffs’ group has called for the provision to be removed or narrowed, warning that DeFi protocols could receive overly broad exemptions.
The Blockchain Association said entities that control supposedly decentralized protocols would still be subject to regulation and could not avoid legal obligations simply by describing themselves as decentralized.
The debate comes during a pivotal week for the Clarity Act. Senate Majority Leader John Thune has said he still expects an initial procedural vote before lawmakers leave for the August recess, although no date has been announced.
Negotiations also remain stalled over ethics provisions addressing President Donald Trump’s crypto interests. New bipartisan language was sent to the White House last week, but no agreement had been reached as of Monday.