White House Adviser Calls Clarity Act ‘Pro-Law Enforcement’

At a virtual town hall hosted by the Blockchain Association on Thursday, White House crypto adviser Patrick Witt described the Clarity Act as ‘pro-law enforcement' and urged lawmakers to advance the package. Republican Sen. Cynthia Lummis, Rep. Tom Emmer and other backers participated. The association earlier circulated a letter signed by 160 former security officials urging passage.

Supporters say the Clarity Act and the included Blockchain Regulatory Certainty Act, or BRCA, would create a clearer regulatory framework for digital assets. BRCA would state that non-custodial developers who do not hold user funds are not money transmitters, a change backers say would reduce legal uncertainty for decentralized finance projects and developers.

Opponents, including some law enforcement groups and Democratic lawmakers, argue parts of the bill could hinder investigations and prosecutions. Democratic Sen. Catherine Cortez Masto voted against the Clarity Act last month, stating that it ‘undermines law enforcement’s ability to trace illicit finance and recover victims’ money, while at the same time creating a more challenging environment to prosecute criminals for knowingly transmitting illicit funds.'

Witt noted lawmakers added new sections to address concerns ahead of the Senate Banking Committee vote last month and warned that ‘money is moving faster globally, and if we are not setting standards as the United States, then we are going to be receivers of somebody else's playbook.' He described the bill as ‘a pro-regulatory, pro-law enforcement bill.'

The package has faced hurdles over the past year, including a dispute between banks and crypto firms over whether stablecoin rewards should be allowed and remaining questions about President Donald Trump's crypto ventures and related financial returns. Those issues could complicate the bill's path.

Lummis urged quick action, saying the package reflects extensive bipartisan negotiation and warning that if Congress does not pass the Clarity Act this year it may not be taken up again until 2030. Lawmakers pushing the bill cited the need for U.S. standards as digital asset activity grows globally.

Lawmakers continue to debate final language, with supporters focusing on legal clarity for market participants and developers and opponents seeking stronger anti-money-laundering provisions and investigative authority.