If the BRCA clause truly allows some players to bypass KYC/AML, then the regulatory balance between traditional finance and the crypto industry will be completely tilted.

Wu Shuo learned that cryptocurrency journalist Eleanor Terrett disclosed that four law enforcement organizations expressed concerns about certain provisions of the CLARITY Act in a joint letter to U.S. government officials, including Section 604, the Blockchain Regulatory Certainty Act (BRCA). The relevant organizations believe that this section could create loopholes in regulation and accountability mechanisms, thereby affecting investigations and prosecutions of illegal activities. At the same time, they pointed out that the bill still falls short in establishing regulatory safeguards similar to those applicable to traditional financial institutions, leading some participants in the crypto market to be exempt from certain KYC and anti-money laundering (AML) reporting requirements. It is reported that this controversy has become one of the core disagreements in the bill's progression to the Senate for review.