Jack Dorsey’s company argued the bill can pair anti-crime safeguards with innovation and said non-custodial service providers should not be treated as money transmitters.
Block called on the Senate to approve the CLARITY Act, framing the legislation as a way to support responsible innovation without weakening protections against illicit activity. The company said “Strong safeguards against crime and enhancing responsible innovation are not competing goals” and argued that “Service providers who do not custody assets should not be considered money transmitters.” The intervention adds to the crypto industry’s push for clearer federal rules, particularly around whether non-custodial providers — firms that do not hold customer assets — should face the same compliance burdens as traditional money transmitters.