Anti-Trafficking Group Challenges CLARITY Act DeFi Provision as Senate Weighs Crypto Bill

The Alliance to End Human Trafficking urged Senate leaders to revisit Section 604 of the CLARITY Act, the Blockchain Regulatory Certainty Act language shielding DeFi developers from money-transmitter rules, arguing it could weaken anti-money-laundering safeguards.

Anti-Trafficking Group Challenges CLARITY Act DeFi Provision as Senate Weighs Crypto Bill The Alliance to End Human Trafficking urged Senate leaders to revisit Section 604 of the CLARITY Act, the Blockchain Regulatory Certainty Act language shielding DeFi developers from money-transmitter rules, arguing it could weaken anti-money-laundering safeguards. Aaron Rafferty June 25, 2026 Key Takeaways The Alliance to End Human Trafficking asked Senate leaders to revisit Section 604 of the CLARITY Act, citing concerns it could weaken anti-money-laundering safeguards, in a letter reported by Punchbowl on June 23. Section 604 would codify the Blockchain Regulatory Certainty Act, shielding decentralized-app developers from money-transmitter rules and from liability for crimes committed by users. Crypto industry groups continue backing the bill, and Polymarket put the odds of the CLARITY Act becoming law in 2026 at 42 percent. A Catholic-backed anti-trafficking group has asked the Senate to take another look at a decentralized finance provision in the CLARITY Act, the crypto market structure bill now stalled in the chamber. The Alliance to End Human Trafficking sent the request to Senate Majority Leader John Thune and Minority Leader Chuck Schumer in a letter reported by Punchbowl on June 23. The concern centers on Section 604, which would codify the Blockchain Regulatory Certainty Act. Under that language, developers who build decentralized blockchain applications would not be treated as money transmitters and would not be held responsible for crimes committed by users of those platforms. The Alliance argued the provision could create regulatory gaps that make it harder for authorities to detect and track financial activity tied to crimes such as human trafficking. It urged Congre