White House to Meet Law Enforcement Groups in Bid to Save Clarity Act’s DeFi Protections
The White House invited representatives from law enforcement groups to a meeting Monday to work through objections to the Digital Asset Market Clarity Act‘s developer-liability language, according to CoinDesk. The sessio...
Watchlist
Archive context. The story has cross-source confirmation.
The White House invited representatives from law enforcement groups to a meeting Monday to work through objections to the Digital Asset Market Clarity Act‘s developer-liability language, according to CoinDesk.
The session was intended to focus on Section 604, drawn from the earlier Blockchain Regulatory Certainty Act, which would shield software developers who don’t ultimately control the tools they build from being classified as “money transmitters” under federal law, CoinDesk reported Monday, citing an unnamed person familiar with the matter.
The crypto industry considers Section 604 essential for decentralized finance products to flourish in the United States. But groups such as the National Sheriffs Association have expressed concern.
“No good reason supports giving mixers, tumblers, and DeFi a blanket exemption,” the group wrote in a May letter to Senate Banking Committee leadership, saying that while some developers genuinely fall outside money-transmission activity, “plenty of others are” engaged in conduct that should trigger Bank Secrecy Act obligations.
White House lead crypto adviser Patrick Witt has led prior outreach to skeptical stakeholders, including earlier sessions with law enforcement and Wall Street bankers. CoinDesk quoted Witt as saying at an industry event earlier this month that law enforcement officials “should be the biggest cheerleaders” for Clarity because it “is really what is missing.”
The White House’s reported move comes as the timeline for Clarity is tightening. Passage requires 60 votes, meaning a significant bloc of Democrats must support the bill, and only about four weeks of Senate floor time remain before the August recess.
Beyond Section 604, outstanding issues include, bringing the CFTC up to full commissioner strength, an ethics provision that would bar senior government officials, including the president, from holding personal crypto interests and stablecoin yield.
Congress’s bandwidth is further strained by President Trump’s standoff over a separate housing affordability bill containing a CBDC ban, which he has refused to sign absent passage of a voter-identification measure.
Related Listen: The Chopping Block: The CLARITY Act, Hyperliquid vs CME, and the Prediction Market Supreme Court Showdown
{"@context":"http:\/\/schema.org\/","@id":"https:\/\/unchainedcrypto.com\/white-house-to-meet-law-enforcement-groups-in-bid-to-save-clarity-acts-defi-protections\/#arve-youtube-jpjrq72wtsg","@type":"VideoObject","embedURL":"https:\/\/www.youtube-nocookie.com\/embed\/JPjrq72wTsg?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=1&autoplay=0"}
The post White House to Meet Law Enforcement Groups in Bid to Save Clarity Act’s DeFi Protections appeared first on Unchained.
Why this matters
Hyperliquid is showing up inside the Regulation theme, so this story is worth tracking for follow-through rather than treating it as a one-off headline.
Original source
Read on UnchainedSame story, other sources
Cross-source coverage
2 sources
CLARITY Act Faces Senate Clock as Law Enforcement Pushes Back on DeFi Exemption
The White House invited law enforcement groups opposing the Digital Asset Market Clarity Act to...
Related market context
Elon Musk’s Grok AI Predicts Lighter Crypto to Flip Hyperliquid
Elon Musk’s AI bot has made an insanely controversial call. Grok AI predicts a potentially significant development for Lighter by...
CFTC’s Selig Says Perpetual Futures on Individual Stocks Can Now Trade in the US
Perpetual futures on individual stocks can now trade on U.S.-regulated exchanges, Commodity Futures Trading Commission Chairman Mi...
Hyperliquid generates $713M in revenue over past year
Hyperliquid's revenue success without venture funding highlights the potential of decentralized finance, but regulatory challenges...
RedStone powers new Apple perpetual futures market on Hyperliquid
The launch of Apple perpetual futures on Hyperliquid could increase market volatility and attract high-risk traders due to leverag...
CFTC Opens U.S. Stock Market to Equity Perpetual Futures
Bitcoin Magazine CFTC Opens U.S. Stock Market to Equity Perpetual Futures Perpetual futures on individual stocks can begin trading...
Aave Labs, Kamino and Veda submit DeFi lending legal framework to the SEC
The submission could pave the way for clearer DeFi regulations, potentially boosting market liquidity and attracting institutional...