Nearly 100 Catholic Leaders Oppose Section 604 of Clarity Act Over Trafficking Concerns on Tuesday

According to The Block, on Tuesday, nearly 100 Catholic leaders representing congregations across the country opposed Section 604 of the Clarity Act (known as the Blockchain Regulatory Certainty Act, or BRCA), warning that the provision could weaken safeguards against human trafficking and illicit financial activity.

In a letter to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer, the Alliance to End Human Trafficking, supported by Catholic organizations, stated that Section 604 creates a safe harbor for non-custodial developers and could hinder law enforcement efforts to investigate crypto-related crimes including trafficking, organized crime, and sanctions evasion. The Catholic leaders said the section "could create broad carveouts and regulatory ambiguities" that make it difficult to monitor illicit activity.