Four law enforcement organizations just sent a letter to Acting AG Todd Blanche and White House crypto adviser Patrick Witt raising concerns about Section 604 of the CLARITY Act.
This is the developer protection provision that has become the central sticking point in getting the bill to a Senate floor vote.
The groups, representing "more than 70,000 prosecutors, sheriffs, chiefs of police, investigators, deputies, officers, and other law enforcement professionals," argue that "as currently drafted, Section 604 risks creating gaps in oversight and accountability" that could hinder criminal investigations.
They say their concern is not with people who "merely write or publish software code" but with "broad exemptions that may shield individuals or entities whose activities facilitate the movement of digital assets."
What makes this letter notable is who did not sign it. The Fraternal Order of Police and the National Association of Police Organizations, the two groups most deeply involved in negotiations with Congress and the crypto industry, are absent.
That suggests the groups closest to the actual legislative text are more comfortable with where things stand than the four who signed.
As we reported, Section 604 already has a significant carve-out. It explicitly preserves the federal statute that was used to prosecute the Samourai Wallet developers and convict Roman Storm of Tornado Cash.
The protection says you're not a money transmitter for building open-source software, but it preserves the exact criminal statute that has already put developers in prison for doing exactly that.
The CLARITY Act needs 7 Democratic votes to clear the Senate's 60-vote filibuster threshold before August recess.
This is the developer protection provision that has become the central sticking point in getting the bill to a Senate floor vote.
The groups, representing "more than 70,000 prosecutors, sheriffs, chiefs of police, investigators, deputies, officers, and other law enforcement professionals," argue that "as currently drafted, Section 604 risks creating gaps in oversight and accountability" that could hinder criminal investigations.
They say their concern is not with people who "merely write or publish software code" but with "broad exemptions that may shield individuals or entities whose activities facilitate the movement of digital assets."
What makes this letter notable is who did not sign it. The Fraternal Order of Police and the National Association of Police Organizations, the two groups most deeply involved in negotiations with Congress and the crypto industry, are absent.
That suggests the groups closest to the actual legislative text are more comfortable with where things stand than the four who signed.
As we reported, Section 604 already has a significant carve-out. It explicitly preserves the federal statute that was used to prosecute the Samourai Wallet developers and convict Roman Storm of Tornado Cash.
The protection says you're not a money transmitter for building open-source software, but it preserves the exact criminal statute that has already put developers in prison for doing exactly that.
The CLARITY Act needs 7 Democratic votes to clear the Senate's 60-vote filibuster threshold before August recess.
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