logo

Protect Developers or Weaken Oversight? Judiciary Committee Strongly Opposes Section 604 of the CLARITY Act

By: theblockbeats.news|2026/01/17 14:30:18
0
Share
copy

BlockBeats News, January 17th, the chairman of the U.S. Senate Judiciary Committee stated in a letter to the Senate Banking Committee that the "Blockchain Regulatory Certainty Act" would weaken federal fund transfer regulation and should not be included in cryptocurrency market structure legislation.

The Judiciary Committee's Republican chairman, Chuck Grassley, and chief Democratic member, Dick Durbin, wrote in the letter that Section 604 of the Banking Committee's market structure bill - aimed at protecting software developers from criminal liability for third-party misuse of their products - would "weaken" federal law regarding unlicensed money transmission. "The Senate Judiciary Committee (which has jurisdiction over Title 18 of the U.S. Code) was not consulted, nor was it afforded the opportunity for advance substantive consideration of the proposed changes."

The letter cited the case of the Department of Justice's prosecution of Tornado Cash developer Roman Storm, stating that the case demonstrated that the prosecuting party had sufficiently argued the importance of existing regulations holding parties to unlicensed money transmission accountable. This letter is another blow to the market structure bill, with the Senate Banking Committee originally scheduled to debate and vote on the bill on Thursday but canceling the agenda on Wednesday night in the face of increasingly strong opposition.

If the provision is retained in the bill, the Judiciary Committee (responsible for legal matters) would need to sign off as the third committee on the overall package, and this latest controversy suggests that the legislative process may become even more complicated. DeFi advocates insist that without these specific protection provisions, they may withdraw their support, signaling another difficult deadlock.

The letter emphasized: "Therefore, we urge the committee to reject any proposed provisions that would weaken the government's ability to hold parties accountable for unlicensed money transmission, including Section 604."

-- Price

--

You may also like

Naval personally takes the stage: The historic collision between ordinary people and venture capital

Naval personally stepped in as the chairman of the USVC Investment Committee. This SEC-registered fund launched by AngelList attempts to bring top private tech assets like OpenAI, Anthropic, and xAI to the general public with a $500 entry threshold. It is not just a new fund, but a structural experi...

a16z Crypto: 9 Charts to Understand the Evolution Trends of Stablecoins

Stablecoins are evolving from trading tools into universal payment infrastructure, and this process is quieter and more thorough than most people expected.

Refutation of Yang Haipo's "The End of Cryptocurrency"

This may be the true test of cryptocurrency. It's not about whether the price has reached a new high, nor about who will achieve financial freedom in the next bull market, but rather whether, after all the grand narratives have been washed away by cycles, it can still leave behind some simpler, more...

Can a hairdryer earn $34,000? Interpreting the reflexivity paradox of prediction markets

Prediction markets are essentially betting on reality, and when participants can access or even influence this path earlier, the market no longer just reflects reality but begins to shape it in return.

6MV Founder: In 2026, the "landmark turning point" for crypto investment has arrived

"I will deploy funds in 2026, so I will tell you this is the best year in history."

Abraxas Capital Mints $2.89 Billion USDT: Liquidity Boost or Just More Stablecoin Arbitrage?

Abraxas Capital just received $2.89 billion in freshly minted USDT from Tether. Is this a bullish liquidity injection for crypto markets, or is it business as usual for a stablecoin arbitrage giant? We analyze the data and the likely impact on Bitcoin, altcoins, and DeFi.

Contents

Popular coins

Latest Crypto News

Read more