CLARITY Act backers say sheriffs misread DeFi rules

Blockchain Association sent Senate Majority Leader John Thune and Minority Leader Chuck Schumer an eight page response on Aug. 3, disputing the National Sheriffs’ Association’s objections to the latest CLARITY Act draft. Summary Blockchain Association says the CLARITY Act regulates intermediaries while protecting developers who lack asset control. The group says registered crypto brokers, dealers and exchanges would face Bank Secrecy Act duties. Section 10604 protects noncontrolling developers but leaves criminal money laundering and sanctions laws fully intact. The bill authorizes $600 million yearly for digital asset investigations from fiscal 2027 through 2031. Senate leaders ended Monday without scheduling CLARITY, while continuing resolution business occupied the floor instead. The trade group argued that the July 22 Senate text does not give decentralized finance platforms, software developers, mixers or bridges a “blanket exemption” from anti money laundering and sanctions laws. It said the bill separates financial intermediaries that control assets or transactions from developers who only create neutral software. The exchange arrived during a narrowing legislative window. T...