Nearly 100 Catholic Leaders Oppose BRCA Section 604 in Clarity Act Over Enforcement Concerns

According to The Block, approximately 100 Catholic leaders sent a letter to U.S. Senate leadership on June 24, opposing Section 604 of the Clarity Act (Blockchain Regulatory Clarity Act, BRCA), arguing the provision could weaken enforcement against human trafficking and illicit financial flows.

The anti-trafficking coalition stated in the letter that the BRCA creates a safe harbor for non-custodial developers, potentially creating regulatory ambiguity and exemption gaps that would hinder monitoring of funds linked to trafficking, organized crime, and sanctions evasion. The crypto industry supports the clause, contending it provides necessary legal clarity for software developers. Cody Carbone, CEO of the Digital Chamber of Commerce, responded that Section 604 merely clarifies that non-custodial developers differ from bank operators.