Catholic Leaders Urge Senate to Reconsider Crypto Bill Provision

A coalition of nearly 100 Catholic leaders has urged U.S. Senate leaders to reconsider part of a major cryptocurrency market structure bill, citing concerns over potential hindrance to trafficking and sanctions investigations.

The Alliance to End Human Trafficking, backed by Catholic groups, is urging Senators to amend Section 604 of the Clarity Act, which would exempt non-custodial crypto developers from money transmitter laws. This provision, also known as the Blockchain Regulatory Certainty Act, has sparked a heated debate in Washington over innovation versus anti-crime safeguards.

The digital asset industry argues that Section 604 provides needed legal certainty for software developers and helps keep innovation from moving offshore. Digital Chamber CEO Cody Carbone says it applies to non-custodial developers rather than entities that handle customer funds like banks.