White House to Meet Law Enforcement Groups on Crypto Clarity Act

The White House has invited law enforcement organizations to a meeting on Monday to discuss objections to illicit-finance provisions in the Digital Asset Market Clarity Act, CoinDesk reported. The session focuses on section 604, known as the Blockchain Regulatory Certainty Act, which aims to shield software developers who do not control the tools they enable from liability as money transmitters.

The National Sheriffs Association stated in a May letter to Senate Banking Committee leaders that no good reason supports giving mixers, tumblers, and DeFi a blanket exemption.

The group added that while some software developers are not engaged in money transmitting, plenty of others are. White House lead crypto adviser Patrick Witt has held previous meetings with law enforcement groups and Wall Street bankers on the Clarity Act.

At an industry-hosted event earlier this month, Witt said the legislation puts real regulatory constraints on businesses and actors that currently live in a state of uncertainty, and told law enforcement officials they should be the biggest cheerleaders for the bill.

Senate Majority Leader John Thune has said he is looking at bringing the Clarity Act to the Senate floor in the coming weeks. Punchbowl News reported Monday that Thune may bring the bill up for a vote whether Democrats are ready or not. Banking Committee Chairman Tim Scott posted on X on Monday that the Senate should vote on crypto market structure legislation in July.

The bill would need 60 yes votes to pass in the Senate. There are only about four weeks of Senate floor time remaining before the summer break. Discussions continue over the Blockchain Regulatory Certainty Act, bringing the Commodity Futures Trading Commission up to full strength, and an ethics provision that would ban senior government officials from personal interests in the crypto sector.