The Alliance to End Human Trafficking is calling for a review of Section 604 of the Clarity Act, expressing concerns that it may reduce accountability for crypto platform developers whose technology is used in human trafficking. Executive Director Katie Boller Gosewisch highlighted that the provision's language, which states developers not controlling user funds are not money transmitters, could allow developers to evade liability if their software facilitates trafficking payments. The Alliance, along with Catholic Charities, has communicated these concerns to Senate leaders.
In contrast, Rebecca Rettig argues that Section 604 aligns with existing U.S. anti-money laundering policies, clarifying that developers not controlling customer assets are not money transmitters, consistent with the Bank Secrecy Act and FinCEN guidance. Rettig emphasized that the bill maintains liability for those controlling user funds and does not exempt developers from other criminal statutes, citing existing money laundering laws as prosecutorial tools.
Anti-Trafficking Group Warns Clarity Act Could Weaken Developer Accountability
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
