Law Enforcement, Catholic Groups Send Letters to U.S. Government Warning CLARITY Act Would Create Crypto Crime Loopholes

Law enforcement and Catholic groups warned the U.S. government that the CLARITY Act could create crypto crime loopholes by weakening oversight tools and exempting certain digital asset services from anti-money laundering requirements. The groups argued that Section 604 of the bill risks enabling criminal activities by shielding developers and decentralized finance businesses from accountability.