CLARITY Act moves to a fight between cops and coders
White House officials met with law enforcement groups on June 10 to try to resolve the CLARITY Act’s biggest Senate hurdle: developer protections modeled on the Blockchain Regulatory Certainty Act. Section 604 would shield “non-controlling” blockchain developers and infrastructure providers from money-transmitter treatment, but police and some Democrats argue it could weaken crypto crime prosecutions by removing key pressure points. Cortez Masto and Warner have tied support to stronger law-enforcement assurances, while the Fraternal Order of Police warned the provision could hinder tracing illicit funds and recovering victims’ money. Industry groups and former officials counter that the bill improves oversight and still preserves liability for knowing facilitation of laundering. The Senate needs 60 votes, with only about 31 session days left before August recess. A narrower safe harbor plus an explicit savings clause for criminal prosecutions is seen as the most plausible compromise; failure to reach one could push action well past the deadline.
