US civic groups voice concern over blockchain regulatory provision

A coalition of U.S. Catholic anti-human trafficking organizations and other civic groups has sent a letter to Senate leadership expressing concern over the Blockchain Regulatory Certainty Act (BRCA) provision within the CLARITY Act. They argue that the BRCA could weaken the oversight framework for illicit financial activities and create regulatory loopholes that could be exploited by human trafficking rings, international criminal organizations, and child exploitation criminals. The letter specifically points to Section 604 of the BRCA, stating it introduces broad exemptions and regulatory uncertainty that could make it difficult to monitor transactions related to money laundering, sanctions evasion, and organized crime. This development indicates that opposition to the BRCA is expanding beyond law enforcement agencies to include religious and civic organizations.