White House Pushes Crypto Clarity Act as Law Enforcement Raises Concerns Over DeFi Rules

The White House is expected to meet with law enforcement organizations as the administration works to build support for the Digital Asset Market Clarity Act, a key cryptocurrency market structure bill currently under consideration in the U.S. Senate.

The discussions will focus on Section 604, also known as the Blockchain Regulatory Certainty Act (BRCA). The provision is designed to protect software developers who create decentralized finance (DeFi) tools without controlling users’ funds, ensuring they are not automatically classified as money transmitters under U.S. law.

Law Enforcement Groups Seek Stronger Anti-Crime Measures

Some organizations, including the National Sheriffs’ Association, argue the current language could create broad exemptions for crypto mixers, tumblers and certain DeFi platforms. They believe some developers should still be subject to anti-money laundering and Bank Secrecy Act (BSA) requirements when their services facilitate financial transactions.

The crypto industry has defended the legislation, saying it introduces stronger tools to combat illicit finance while providing long-awaited legal certainty for blockchain developers. White House crypto adviser Patrick Witt has also argued that the bill would strengthen oversight instead of weakening it.

Senate Vote Could Take Place in July

Senate Majority Leader John Thune is reportedly preparing to bring the Clarity Act to the Senate floor in the coming weeks, while Senate Banking Committee Chairman Tim Scott has publicly called for a vote in July.

However, the legislation faces several challenges before final approval. The bill requires 60 votes to pass the Senate, meaning support from multiple Democrats will be necessary. Lawmakers are also debating provisions involving the Commodity Futures Trading Commission (CFTC) and ethics rules that would prohibit senior government officials, including the president, from holding personal cryptocurrency interests.

With only a few weeks remaining before the Senate’s summer recess, negotiations are expected to continue as lawmakers work to resolve the remaining disputes.