Four major U.S. law enforcement organizations have expressed concerns that the "Clarity Act" could impede investigations into cryptocurrency crimes. In a letter to the Department of Justice and the White House, the National District Attorneys Association, the National Association of Assistant U.S. Attorneys, the International Association of Chiefs of Police, and the National Sheriffs’ Association highlighted potential regulatory loopholes in Section 604 of the Act.
The provision in question offers a "safe harbor" exemption for non-custodial developers, which law enforcement agencies argue could protect individuals or entities involved in transferring crypto assets. This exemption, they warn, might obstruct efforts to investigate and prosecute crypto-related crimes and undermine the current anti-money laundering framework.
U.S. Law Enforcement Warns 'Clarity Act' May Hinder Crypto Crime Probes
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