PANews, June 24 – According to The Block, nearly 100 Catholic leaders have written to U.S. Senate leaders opposing Section 604 of the Clarity Act, the Blockchain Regulatory Certainty Act (BRCA), arguing that the provision could weaken regulatory capabilities to combat illicit financial activities such as human trafficking. In the letter, the anti-human trafficking coalition stated that innovation must not come at the expense of human dignity and public accountability, and that the BRCA provision could create regulatory ambiguity and exemption loopholes, making it harder for law enforcement to monitor illicit financial flows related to trafficking, organized crime, child exploitation, sanctions evasion, and more.

The point of contention is that the BRCA creates a safe harbor for non-custodial developers, explicitly clarifying that they are not money transmitters. The crypto industry broadly supports the provision, viewing it as providing much-needed legal certainty for software developers and preventing an innovation exodus. Cody Carbone, CEO of the Digital Chamber of Commerce, responded that Section 604 merely clarifies that non-custodial developers are different from those operating banks and should not be misconstrued.