Blockchain Association Pushes Back Against Sheriffs' Objections to CLARITY Act

The Blockchain Association has disputed the objections of the National Sheriffs' Association to the latest draft of the CLARITY Act. In an eight-page response sent to Senate Majority Leader John Thune and Minority Leader Chuck Schumer on August 3, the association argued that the bill regulates intermediaries while protecting developers who lack asset control.

The group pointed out that registered crypto brokers, dealers, and exchanges would face Bank Secrecy Act duties under the bill. However, Section 10604 protects noncontrolling developers from being treated as money transmitting businesses merely for creating software or supplying infrastructure, as long as they lack the legal right to control transactions involving users' assets.

The association also emphasized that the bill leaves laws covering money laundering, wire fraud, sanctions violations, and terrorism financing intact. A developer who knowingly handles criminal proceeds or controls customer funds could still face prosecution under these laws.