Blockchain Association Pushes Back Against CLARITY Act Criticisms

Disputes over the CLARITY Act continue as the Blockchain Association pushed back against concerns raised by the National Sheriffs' Association. In a letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the association argued that the bill's developer protections are too broad.

The CLARITY Act aims to regulate intermediaries in the digital asset market while protecting developers who lack control over assets. The Blockchain Association stated that registered crypto brokers, dealers, and exchanges would face Bank Secrecy Act duties under the bill.

Section 10604 of the bill protects noncontrolling developers from being treated as money transmitting businesses, but leaves criminal laws intact. This means that developers who knowingly handle illicit funds or control customer assets could still face prosecution.