Police organizations, along with some Democratic politicians, are proposing updates to the CLARITY Act. These changes could potentially allow prosecutors to more easily bring charges against creators of certain cryptocurrency software.
However, White House officials still feel like the suggestions made fall short of what they want.
Trump’s Crypto Adviser Rejects Proposal
Patrick Witt, an advisor to Donald Trump on cryptocurrency issues, strongly rejected a recent proposal, stating it wasn’t the result of helpful talks with the White House or Treasury Department. He explained that the administration had already communicated its concerns to Senator Catherine Cortez Masto for several weeks and that this new version still didn’t address them.
As an analyst following this closely, I’m seeing movement on the CLARITY Act. Politico is reporting that the two main associations for U.S. prosecutors have sent new proposed changes to the White House, hoping to resolve the months-long stalemate surrounding the bill.
Senator Masto stated that the latest version of the bill is the result of successful talks with law enforcement officials, the White House, and the Treasury Department, and she’s optimistic they can finally resolve the matter.
The proposal concerns the Blockchain Regulatory Certainty Act (BRCA), and recent changes have removed protections that could have shielded developers from criminal charges. The main disagreement centers around holding cryptocurrency developers accountable for illegal activities happening on the platforms they create.
As a crypto investor, I’m hearing the Trump administration wants regulators to give builders – those creating new blockchain tech – some leeway, especially if they *don’t* handle users’ money directly. The idea is to foster innovation. But honestly, it sounds risky. A lot of experts and law enforcement are worried this could actually open the door for more scams and illegal activity because it might weaken safeguards against financial crimes.
New York Attorney General Letitia James is also concerned about the CLARITY Act, believing it could make it harder for the state to prosecute crypto fraud. She argues the law would restrict New York’s power to hold crypto companies responsible for illegal activity.
Police Groups and Security Officials Rally Behind Clarity Act
The new version of the bill isn’t facing universal opposition. The Fraternal Order of Police, the nation’s largest police organization, recently announced its support after initially expressing worries about a specific section, the BRCA.
The report notes that several groups support the legislation, such as the National Organization of Black Law Enforcement Executives and the Federal Law Enforcement Officers Association.
Just last month, more than 160 current and former government experts – including those with backgrounds in national security and intelligence – sent a letter to Senators urging them to pass this bill. They believe it will help crack down on illegal money movement involving cryptocurrencies.
2026-07-29 22:25