A coalition of four major law enforcement agencies and a group of nearly 100 Catholic leaders sent a letter Tuesday warning that part of the Digital Asset Market Clarity Act would weaken the tools investigators and prosecutors rely on to combat financial crimes.
Security letter, to be said for Attorney General Todd Blanche and Patrick Witt, the executive chairman of the Council of Advisors for Digital Assets, came from the National District Attorneys Association, the National Association of Assistant United States Attorneys, the International Association of Chiefs of Police, and the National Sheriffs’ Association.
Together, these groups represent more than 70,000 prosecutors, sheriffs, police chiefs, investigators, and other law enforcement professionals.
Their main concern is Section 604 of the bill – the section that includes the Blockchain Regulatory Certainty Act, or The cost of BRCAwhich would ensure that a developer or infrastructure provider that cannot move or control a user’s digital assets is not a money transmitter under federal law.
Supporters say the language is necessary to protect developers from lawsuits. Legal groups argue that the exemption is too broad.
“As currently drafted, Section 604 is at risk of creating loopholes in monitoring and accountability that could hinder those efforts,” the groups wrote, adding that their concern “is not with people who simply write or publish software code, or with technical expertise,” but with loose ends that could protect actors who support digital researchers.
The groups also argue that the bill fails to prevent money laundering and counter terrorist financing, saying it does not establish the same monitoring and reporting standards used by financial institutions. They warned that some products can release mixers, tumblers, and other financial businesses from AML and know what the customer wants.
Other letterwhich was sent to Senate Majority Leader John Thune and Senate Democratic Leader Charles Schumer, was signed by nearly 80 organizations and leaders, including the Alliance to End Human Trafficking, the Office of Justice and Environment of the Jesuit Conference, and many Catholic sisters and survivors.
“Traffickers are quick to take advantage of new technologies when oversight is weak,” the groups wrote, arguing that the law’s differences could make it harder to track the flow of money for trafficking, child abduction, and organized crime.
Background: What the CLARITY Act can do
HR 3633, the Digital Asset Market Clarity Act, is the most important piece of crypto legislation to pass through Congress in years. House it has passed and 294-134 in July 2025. The Senate Banking Committee approved the bill 15-9 in May 2026, placing it on the Senate Legislative Calendar for a floor vote.
The bill divides oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission, creating a framework for crypto exchanges, brokers, stablecoin providers, and DeFi participants.
The Trump administration has made the law more important, and crypto industry groups have pushed for Section 604 protections to be preserved.
To advance in the Senate, the bill needs 60 votes — a threshold that gives independent Democrats a critical advantage. Senators Mark Warner of Virginia and Catherine Cortez Masto of Nevada have both arrested their support for the administration’s signing of Section 604, making the letters of opposition a direct threat to the bill’s prospects.
Yesterday, Congress it has been fixed a July 17 hearing in New York on the CLARITY Act, a large crypto market system bill that will divide supervision between the SEC and the CFTC, as legislators push to passage at the end of this year.
