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Catholic leaders oppose Clarity Act over illicit finance concerns

Catholic leaders oppose Clarity Act over illicit finance concerns

Nearly 100 Catholic leaders urged Senate leaders to reject the bill's Blockchain Regulatory Certainty Act provision, warning it could weaken oversight of trafficking, organized crime, child exploitation and sanctions evasion.

Fact Check
Multiple independent outlets (The Block, Crypto Briefing, Traders Union) and a Punchbowl News reporter consistently report that nearly 100 Catholic leaders, organized via the Alliance to End Human Trafficking, opposed the Clarity Act (specifically Section 604) on June 23, 2026, citing weakened safeguards against money laundering and human trafficking. The reporting is consistent in date, organization, signatory count, and substance, strongly supporting the claim.
Summary

Catholic leaders are opposing the Clarity Act, arguing that a provision in the crypto market structure bill could weaken oversight of illicit finance. In a June 24 letter to Senate Majority Leader John Thune and Democratic Leader Chuck Schumer, nearly 100 Catholic leaders urged senators to oppose Section 604 of the bill, known as the Blockchain Regulatory Certainty Act, saying it could make monitoring of trafficking, organized crime, child exploitation, sanctions evasion and related activity harder. The dispute centers on a safe harbor for non-custodial developers, which the crypto industry supports as needed legal clarity. Digital Chamber CEO Cody Carbone said the provision would simply clarify that such developers are not bank operators. The clash adds a faith-based policy voice to the broader U.S. debate over how to regulate crypto while preserving anti-money laundering and other financial-crime safeguards.

Terms & Concepts
  • Blockchain Regulatory Certainty Act: A provision in the Clarity Act that supporters say would clarify the legal treatment of certain blockchain developers.
  • non-custodial developers: Developers who build crypto software or tools without taking control of users' funds.
  • safe harbor: A legal protection meant to shield specified activity or actors from certain regulatory obligations.