Nearly 100 Catholic Leaders Oppose Clarity Act, Saying It Weakens Regulatory Ability to Combat Illicit Finance

CoinFeed June 24 news, according to The Block, nearly 100 Catholic leaders sent a letter to U.S. Senate leaders opposing Section 604 of the Clarity Act, the Blockchain Regulatory Certainty Act (BRCA), arguing that the provision could weaken regulatory capabilities to combat illicit financial activities such as human trafficking. The anti-trafficking coalition stated in the letter that innovation cannot come at the expense of human dignity and public accountability, and that the BRCA provision may create regulatory ambiguity and exemption loopholes, making it harder for law enforcement to monitor illicit fund flows related to trafficking, organized crime, child exploitation, sanctions evasion, and more. The controversy centers on the BRCA creating a safe harbor for non-custodial developers, clarifying that they are not money transmitters. The crypto industry generally supports the provision, believing it provides much-needed legal certainty for software developers and prevents innovation from moving overseas.