CLARITY Act Safe Harbor Negotiations Shift to Prosecutors as White House Rejects Amendment

Negotiations on CLARITY Act Section 604 move to prosecutors after White House and Treasury reject proposed amendments, with National Sheriffs Association abstaining from support.

Woofun AI reports that negotiations regarding the Blockchain Regulatory Certainty Act (Section 604 of the CLARITY Act) have shifted focus from law enforcement agencies to prosecutorial groups. The White House and the Treasury Department rejected Senator Catherine Cortez Masto’s assertion that a proposed amendment reflected their positions, while Patrick Witt of the Cryptocurrency Committee described the proposal as "far removed from the government’s position."

The Treasury Department attributed the amendment's wording to Washington-based lobbyists. The National Sheriffs Association, which previously opposed the CLARITY Act, did not sign the proposed amendment. Section 604 aims to clarify that non-custodial software developers who do not control user funds are not classified as money transfer institutions under federal law. Senators Cortez Masto and Mark Warner previously stated their support for the bill depended on law enforcement acceptance of its anti-illegal finance provisions.