White House to Meet Law Enforcement Over CLARITY Act, Aiming to Protect DeFi Developers

White House to Meet Law Enforcement Over CLARITY Act, Aiming to Protect DeFi Developers

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News Editor
2026-06-29 15:30:10
The White House is reportedly planning talks with law enforcement groups that oppose certain provisions of the CLARITY Act, seeking to reconcile differences over combating illicit finance. The core dispute centers on Section 604, which would shield software developers who do not control their tools from being classified as money transmitters, a key protection for decentralized finance (DeFi) projects. Groups like the National Sheriffs' Association oppose blanket exemptions for mixers, tumblers, and DeFi. White House crypto advisor Patrick Witt has held multiple meetings with opponents, while Senate Majority Leader John Thune eyes a floor vote in coming weeks. The bill requires 60 votes to pass, with ongoing debates over BRCA provisions, CFTC staffing, and an ethics clause banning senior officials from holding crypto assets.
CLARITY ActWhite Houselaw enforcementDeFimoney transmitterSection 604Patrick Wittregulatory certainty

According to CoinDesk, the White House is expected to hold talks with representatives from law enforcement agencies that oppose certain provisions of the CLARITY Act, aiming to bridge gaps in anti-financial crime efforts. The central bone of contention is Section 604, the so-called 'blockchain regulatory certainty' clause. This section is designed to ensure that software developers who do not control their tools are not classified as 'money transmitters' and thus held legally liable — a protection widely seen as essential for the continued development of decentralized finance (DeFi) projects.

Opponents, including the National Sheriffs' Association, have previously sent letters to Senate Banking Committee leadership arguing against a 'one-size-fits-all' exemption for mixers, tumblers, and DeFi projects, warning it could weaken anti-money laundering and counter-terrorism financing efforts. White House Chief Crypto Advisor Patrick Witt has held multiple rounds of talks with opponents — covering both law enforcement and Wall Street bankers — to push the bill forward in the Senate. The White House has not yet responded to requests for comment on the latest meetings.

Industry groups like the Blockchain Association have defended the bill's crime-fighting provisions, noting that it adds several new tools to combat illicit activity. Meanwhile, political opponents such as Senator Elizabeth Warren continue to criticize the bill's approach to illegal finance. Senate Majority Leader John Thune has indicated he is considering bringing the bill to the full Senate for a vote in the coming weeks. Senate Banking Committee Chairman Tim Scott wrote on X that the Senate 'should vote on crypto market structure legislation in July.' The bill requires 60 votes to pass the Senate. Ongoing discussions also cover BRCA provisions, CFTC staffing needs, and an ethics clause prohibiting senior government officials from holding crypto asset interests.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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