Blockchain Association has sent a letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer challenging recent criticism of the Clarity Act from the National Sheriffs’ Association. The crypto industry group said the sheriffs association misunderstood how the bill approaches decentralized finance regulation. The National Sheriffs’ Association had warned Senate leaders last week that the legislation creates overly broad exemptions for DeFi in anti-money laundering, sanctions compliance, and know-your-customer rules, and said that could make it harder for law enforcement to combat financial crime. Blockchain Association rejected that characterization, saying the bill does not grant the crypto industry a blanket exemption. Instead, it argued, the measure imposes strict obligations on intermediaries and gives law enforcement tools to pursue financial crime. Chief Policy Officer Lindsay Fraser said that, with a Senate vote approaching, it was necessary to correct what the group described as misconceptions surrounding the legislation.
Blockchain Association sent a letter on Monday to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, disputing earlier criticism of the Clarity Act from the National Sheriffs’ Association, or NSA. The crypto industry group said the sheriffs association had misunderstood the bill’s regulatory design for decentralized finance, or DeFi.
Last week, the NSA wrote to Senate leadership saying the Clarity Act creates overly broad exemptions for DeFi in anti-money laundering, sanctions compliance, and know-your-customer, or KYC, rules. The group said that could make it harder for law enforcement to fight financial crime.
The NSA represents more than 3,000 sheriffs and 10,000 public safety officers. Its position has added to the controversy around the bill ahead of its progress in the Senate.
Blockchain Association said the Clarity Act does not provide the crypto industry with a “blanket exemption.” It said the bill instead places strict obligations on intermediaries while also giving law enforcement tools to combat financial crime.
Lindsay Fraser, the organization’s chief policy officer, said that with a Senate vote approaching, it was necessary to correct misconceptions surrounding the legislation.
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