Blockchain Association Pushes Back Against Criticism of CLARITY Act
The Blockchain Association has penned an open letter to Senate leaders in defense of the CLARITY Act, which aims to provide clarity on blockchain and cryptocurrency regulations. The association argues that the bill's detractors have 'misunderstood' its provisions.
The controversy centers around Section 10604, also known as the Blockchain Regulatory Certainty Act (BRCA), which some claim will exempt decentralized finance platforms from anti-money laundering laws. However, the Blockchain Association maintains that this is not the case and that the bill does not create a blanket exemption for DeFi platforms.
The association points out that the legislation requires any company or platform that controls customer funds to follow Bank Secrecy Act (BSA) rules, anti-money laundering laws, and sanctions requirements. It also notes that the bill includes $3 billion in funding to help state and local law enforcement investigate crypto-related crimes.
The National Sheriffs' Association has expressed concerns about the bill's potential impact on law enforcement efforts, but the Blockchain Association counters that software developers should not be regulated like financial institutions if they never take control of customer assets. With Congress set to begin its summer recess on August 7, lawmakers have only a few days to act on the CLARITY Act before it may be stuck in limbo.