Blockchain Association Fights Back Against Criticisms of CLARITY Act
The Blockchain Association has written to Senate leaders in defense of the CLARITY Act, a bill aimed at regulating the crypto industry. The association's letter comes after the National Sheriffs' Association (NSA) sent a letter to Senate Majority Leader John Thune and Senate Minority Leader Chuck Schumer on July 31.
The NSA claimed that the CLARITY Act creates broad exemptions for decentralized finance (DeFi), crypto mixers, and cross-chain bridges, which could make it harder for law enforcement to stop money laundering and other illegal activities.
However, the Blockchain Association disputed this claim, stating that the legislation does not create a blanket exemption for DeFi. Instead, it requires any company or platform that controls customer funds to follow Bank Secrecy Act (BSA) rules, anti-money laundering laws, and sanctions requirements.
The association also pointed out that the bill includes $3 billion in funding to help state and local law enforcement investigate crypto-related crimes.