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🇺🇸 CLARITY Act: Law Enforcement Pushes Back On Section 604
Four US Law Enforcement Groups (70,000+ Members) Sent A Letter To Acting AG Blanche And WH Adviser Witt. Concerns Remain Unresolved. Flagged By Eleanor Terrett.
The Issue:
Section 604 Says Non-Controlling Developers Are Not Money Transmitters. Law Enforcement Warns This Could Create Oversight Gaps And Exempt Some From KYC/AML.
The Nuance Most Miss:
It Only Narrows Regulatory Classification, Not Criminal Liability. Knowingly Moving Criminal Funds Is Still Prosecutable. TRM Labs Confirmed This.
Why It Matters:
Senators Warner And Cortez Masto Tied Their Support To Law Enforcement Sign-Off. Polymarket Odds For 2026 Passage Now ~48%, Down From 74% A Month Ago.
Writing Code Is Not Money Transmission. Moving Criminal Money Is Still A Crime. That Distinction Is The Whole Debate.