Debate continues around the Clarity Act. But the conversation should be grounded in what the bill says rather than exaggerations of what people assume is in there without having read it.
The bill is designed to bring digital asset activity into a clearer regulatory framework. Clarity creates new obligations, supervisory hooks, and agency rulemakings while preserving the core authorities DOJ and federal agencies already use to pursue money laundering, sanctions evasion, fraud, and scams. The bill does not make it easier for criminals to use crypto to launder money.
Framing Clarity as “deregulation” is puzzling, to say the least. The bill includes hundreds of pages of new obligations, registration requirements, disclosures, rulemakings, and compliance undertakings that do not exist today.
The same is true for arguments that the bill lets banks put customer assets at risk. What the bill does is allow regulated financial institutions to responsibly innovate, including by using blockchain technology to perform functions they may otherwise already perform through other means, subject to applicable supervision and regulatory requirements. Banks are not going to be secretly converting customer deposits/assets into crypto because of this bill.
On illicit finance specifically, check out Title II and Title III of Clarity. Those sections cover new obligations relating to illicit finance, protocols, and front ends. And if you’re concerned that the Blockchain Regulatory Certainty Act (BRCA) or other developer protections in Clarity create a money laundering loophole, please point us to the language that does so. The BRCA aligns the scope of money transmission with the longstanding interpretation of the federal agency that administers the Bank Secrecy Act. It does not legalize money laundering, financing of terrorism, evading sanctions, or knowingly facilitating the movement of dirty money.
Clarity does not strip away the rules that apply to other types of investments. In fact, Clarity reflects a basic parity principle that a tokenized security is still a security. Tokenizing something does not magically remove it from the applicable regulations.
The claim that Clarity makes it far more difficult for regulators to crack down on fraud and scams is also impossible to reconcile with the text of the bill. Take Amendment 126, for example, adopted during the Banking markup on a bipartisan basis. That makes clear that unless explicitly addressed by Clarity, existing authorities for fraud, scams, deceptive practices, and similar misconduct remain fully intact and available to regulators. If someone commits fraud, this bill does not give them a free pass.
No part of Clarity authorizes taxpayer bailouts for crypto. The bill includes clarifications about issues like bankruptcy and customer property, but that is not the same thing as putting taxpayers on the hook for crypto bailouts.
There are fair debates around ethics provisions. Those provisions were not included in the Banking markup because of jurisdictional issues, but many remain at the table for ongoing negotiations around ethics language in any final bill.
And yes, crypto participates in politics. So do banks, unions, lawyers, energy companies, consumer groups, tech companies, and every other organized interest in America. Political advocacy does not prove that the underlying policy is wrong.
It is also insulting to suggest that a lawmaker's support for crypto legislation can only be explained by ignorance or corruption. Members and staff have spent years hearing from the industry, its critics, academics, regulators, and many others. Pretending support can only come from bad faith ignores the years of education and policy work that have gone into this debate.
The industry has not been hiding Clarity. We have been talking about this bill for months. Organizations like
@BlockchainAssn,
@crypto_council,
@DigitalChamber,
@fund_defi,
@standwithcrypto, and so many others have been speaking publicly about the bill and urging people to contact their representatives to explain why regulatory clarity and other specific parts of the text matter. This debate has been happening in public. And it will continue.
The Senate is nearing a vote on the Clarity Act.
The bill would make it easier for criminals to use crypto to launder money, and doesn't restrict Trump and his family from making billions.
The Act would also deregulate the industry, and let banks put your savings into crypto.