Anti-Human Trafficking Group Fights Clarity Act Over Digital Asset Loophole
A long-stalled digital asset market bill is facing opposition from an anti-human trafficking group ahead of its U.S. Senate vote next week.
The Digital Asset Market Clarity Act of 2025 aims to clear up regulatory uncertainties and vulnerabilities in the digital asset sphere, providing stronger consumer protections. It would precisely define cryptocurrencies and require cryptocurrency brokers and dealers to register with the Commodity Futures Trading Commission.
However, Section 604 of the bill has raised alarm bells in anti-trafficking groups. This provision creates a safe harbor for developers and providers of digital asset technology or blockchains, exempting them from registering as money transmitters and certain anti-money laundering safeguards.
Katie Gosewisch, executive director of the Alliance to End Human Trafficking, expressed concerns that this exemption is too broad and could extend beyond neutral software developers to platforms and services used by criminals. She argued that lawmakers can protect legitimate innovation without creating new blind spots for bad actors to exploit.