Trafficking Groups Oppose Digital Asset Bill Over Exemption Concerns
A long-stalled digital asset market bill is facing opposition from anti-human trafficking groups ahead of its Senate vote next week. The Digital Asset Market Clarity Act of 2025, or the Clarity Act, aims to clear up regulatory uncertainties and provide stronger consumer protections in the digital asset sphere.
The bill would precisely define cryptocurrencies and require cryptocurrency brokers and dealers to register with the Commodity Futures Trading Commission, following the same Bank Secrecy Act rules as normal banks do. The CFTC would oversee the trading, buying, and selling of digital commodities, while the Security and Exchange Commission would regulate the initial fundraising stages for token-selling projects.
A provision in Section 604 of the bill has raised alarm bells in anti-trafficking groups, creating a safe harbor for developers and providers of digital asset technology or blockchains so long as they do not directly control users' funds. This exemption could potentially extend to platforms and services that criminals use to move and obscure money, making it harder to track suspicious activity.
Katie Gosewisch, executive director of the Alliance to End Human Trafficking, argues that lawmakers can protect legitimate innovation without creating new blind spots for bad actors to exploit. The bill needs at least 60 votes to clear the chamber filibuster and its future in the Senate appears uncertain.