Trump's Crypto Adviser Rejects CLARITY Act Developer Proposal

Trump’s crypto adviser, Patrick Witt, rejected a revised proposal to the CLARITY Act, stating that the changes were far from what the administration had demanded. The proposal, backed by law enforcement groups and key Democrats, aimed to make it easier to prosecute crypto software developers.

According to a report from Politico, two major groups representing U.S. prosecutors submitted fresh changes to the White House to break months of deadlock over the CLARITY Act. The proposal focuses on the Blockchain Regulatory Certainty Act (BRCA), removing provisions that could protect developers from criminal prosecution in some cases.

Senator Catherine Cortez Masto claimed the new language was the result of productive negotiations with law enforcement, the White House, and Treasury. However, Witt dismissed this, saying the administration had made its position clear for weeks and that the latest revision was ‘not even close’ to meeting its expectations.

At the heart of the dispute is whether law enforcement should hold crypto developers responsible for crimes committed on the platforms they build. The Trump administration argues that builders who do not hold customer funds should be protected to encourage innovation. Critics and law enforcement groups disagree, warning that the current language could make it easier for financial crimes to go unchecked.

New York Attorney General Letitia James also opposed the CLARITY Act, stating it could weaken state enforcement against crypto fraud by limiting the ability to hold digital asset firms accountable.

Despite the rejection, some groups have backed the bill. The Fraternal Order of Police, the largest police organization in the U.S., dropped its previous objections and supported the crypto bill after the revisions. Other groups, including the National Organization of Black Law Enforcement Executives and the Federal Law Enforcement Officers Association, also voiced support.

Last month, over 160 former national security, intelligence, and other officials wrote to the Senate in favor of the bill, arguing it would strengthen efforts to combat illicit finance in the crypto space.

Source: https://cryptopotato.com/trumps-crypto-adviser-rejects-clarity-act-developer-proposal/