Close to 100 Catholic leaders representing congregations across the country are pushing back against a sweeping cryptocurrency market structure bill under discussion, warning that it could weaken safeguards designed to combat human trafficking.
In a letter on Tuesday sent to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer, the Alliance to End Human Trafficking, which is supported by Catholic organizations, said a specific section in the so-called Clarity Act would make it harder to oversee illicit activity linked to trafficking and other crimes.
"The Catholic Church has long taught that economic systems and markets must ultimately serve the human person, especially the poor, vulnerable, and those at greatest risk of exploitation," they said in the letter obtained by The Block. "While we recognize the significant promise of emerging financial technologies and support responsible innovation that expands opportunity and strengthens American leadership, innovation cannot come at the expense of human dignity or public accountability."
Punchbowl News earlier reported news of the letter.
At issue is Section 604, aka the Blockchain Regulatory Certainty Act (BRCA), a standalone bill that has been incorporated into the Clarity Act and has emerged as a key point of contention as lawmakers try to pass broader crypto legislation. The provision creates a safe harbor for non-custodial developers, clarifying that they are not money transmitters.
