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 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

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