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Catholic Leaders Oppose Crypto Clarity Act Over Trafficking

Catholic coalition opposes crypto bill, warning it could shield developers and enable trafficking.

  • A coalition of Catholic leaders urged U.S. Senate leaders to oppose a key section of the Clarity Act.
  • They warned the bill’s developer protections could facilitate human trafficking and illicit finance.
  • The Blockchain Regulatory Certainty Act (BRCA) is a major sticking point, facing opposition from multiple groups.
  • The crypto market structure bill faces a narrow window for passage before the November midterm elections.

A coalition of 82 Catholic leaders sent a letter to U.S. Senate leadership on Tuesday, warning that a central provision of the crypto Clarity Act could enable crimes like human trafficking. Organized by the faith-based Alliance to End Human Trafficking, the group argued the bill violates Christian social teachings by potentially shielding tools used for exploitation.

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The leaders specifically targeted the Blockchain Regulatory Certainty Act (BRCA), which exempts decentralized software developers from prosecution. “The test of any financial system is not simply whether it generates wealth or innovation, but whether it safeguards human life and dignity,” they wrote, according to their letter first reported by Punchbowl News. They stated the provision may hinder monitoring of illicit finance tied to trafficking and organized crime.

However, many industry leaders consider the BRCA a non-negotiable red line for their support. Consequently, the bill now faces opposition from Wall Street, Native American tribes, law enforcement, and some Democrats. Meanwhile, the Trump Department of Justice has recently sent developers of privacy-focused software to prison.

Many believe the legislation must pass by next month to become law this year. The looming November midterm elections create a compressed timeline for the bill’s contentious provisions.

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