Blockchain Association Challenges Sheriffs' Claims on Clarity Act Exemptions

The Blockchain Association is pushing back against claims by the National Sheriffs' Association that the Clarity Act would exempt decentralized finance (DeFi) from anti-money laundering and know-your-customer requirements.

In a letter to Senate Majority Leader John Thune and Senate Minority Leader Chuck Schumer, the association's chief policy officer, Lindsay Fraser, argued that the bill imposes rigorous obligations on intermediaries while distinguishing between financial intermediation and neutral software development.

The timing is critical as lawmakers are due to leave for the August recess on Friday and attention will shift to November elections, leaving limited time for a Senate floor vote.