The White House is working to build support for the Digital Asset Market CLARITY Act by meeting with law enforcement groups that have concerns about the bill’s anti-money laundering rules. These talks are happening as Senate Republicans plan to bring the major crypto market structure bill to a vote in July, before Congress leaves for its August break.
The main debate centres on Section 604, called the Blockchain Regulatory Certainty Act (BRCA), which aims to protect software developers of decentralized apps from being labelled as money transmitters if they do not control users’ assets.
Patrick Witt, the White House’s crypto adviser, has been meeting with law enforcement, banking groups, and industry representatives to address concerns and keep the bill moving forward.
Some law enforcement groups, such as the National Sheriffs’ Association, say the current wording could accidentally protect bad actors who use crypto mixers, tumblers, and certain DeFi services from anti-money laundering rules. In a letter to lawmakers, the association warned against giving what it called a blanket exemption for decentralized finance.
Crypto industry groups disagree. They assert that the action improves supervision and gives blockchain developers the regulatory certainty they need. They also claim that unclear regulations have made it difficult for businesses to operate in the United States.
At an industry event earlier this month, Witt said the bill creates real regulatory requirements for crypto businesses and gives developers legal certainty. He also said that clearer rules would help law enforcement agencies.
The debate over illicit finance is still one of several issues that have not been settled in the bill. Ethics regulations that prohibit public servants from possessing cryptocurrency and from occupying vacant positions at the Commodities Futures Trading Commission (CFTC) present further difficulties.
Republicans will need Democratic support to pass the CLARITY Act, which requires 60 votes in the Senate. Lawmakers are under pressure to resolve their disagreements in order to enact one of the most significant crypto regulatory laws in American history, with only a few weeks until summer vacation.
🚨NEW: In a letter to administration officials, a group of four law enforcement organizations say they remain concerned about certain provisions in the Clarity Act, including Section 604 (the Blockchain Regulatory Certainty Act), arguing it would create gaps in oversight and… pic.twitter.com/y8FQ0HKjp0
— Eleanor Terrett (@EleanorTerrett) June 23, 2026
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