White House meets with law enforcement over CLARITY Act disputes

The White House invited law enforcement agencies opposing the CLARITY Act to a meeting on June 29, CoinDesk reported. The meeting aims to resolve disagreements over provisions for combating illicit finance, such as money laundering. The central point of contention is Section 604 of the act, known as the Blockchain Regulatory Certainty Act (BRCA). This provision would ensure that developers who create software but do not directly operate or control it are not considered money transmitters. The industry views this as an essential legal safeguard for DeFi development. Conversely, some groups, including the National Sheriffs' Association, have expressed concerns that the provision could grant overly broad immunity. In a letter sent to the Senate Banking Committee in May, they argued that mixers, tumblers, and DeFi should not receive a blanket exception. They added that while some developers are not subject to regulation, many perform activities that should fall under the Bank Secrecy Act (BSA). Patrick Witt, Executive Director of the White House Cryptocurrency Committee, has been in continuous discussions with stakeholders, including law enforcement and Wall Street financial firms, to secure the CLARITY Act's passage in the Senate.