5 corruption gaps Congress must close in the Clarity Act
The Digital Asset Market Clarity Act would create a federal crypto framework, but it still leaves five major loopholes. It should not let platforms avoid anti-money-laundering and sanctions rules by claiming to be “decentralized,” using automated software, or operating through mixers and other anonymizing tools. It should give Treasury clear authority to stop tools used to evade sanctions, especially where hostile states and criminals already move stolen or illicit funds. It should also extend stablecoin oversight beyond issuers so DeFi, offshore platforms, and other intermediaries cannot be used to bypass controls. Platforms serving U.S. customers should not escape scrutiny by incorporating abroad if they route activity through the U.S. financial system. Finally, public officials and their immediate families should be barred from owning or promoting digital asset ventures while in office, to prevent conflicts of interest. The bill, as written, is seen as too weak to protect financial integrity, national security, and public trust.
