More than 80 Catholic leaders and four major law enforcement groups delivered letters to Senate leadership around June 23–24, 2026, opposing Section 604 of the CLARITY Act. The provision would exempt non-custodial DeFi developers from money-transmitter classification and the accompanying anti-money laundering obligations.
The Alliance to End Human Trafficking, a faith-based national network, organized the Catholic coalition, whose signatories include members of the Sisters of Saint Joseph of Philadelphia, the Sisters of the Blessed Virgin Mary, and the Congregation of Sisters of St. Agnes. The letter warned Section 604 "may make it more difficult to responsibly monitor illicit financial activity tied to trafficking, organized crime, child exploitation, sanctions evasion, and other forms of abuse," per Decrypt. "Innovation cannot come at the expense of human dignity or public accountability," it added, per The Block.
The National District Attorneys Association, the National Association of Assistant United States Attorneys, the International Association of Chiefs of Police, and the National Sheriffs' Association, collectively representing more than 70,000 professionals, filed parallel letters arguing Section 604 "risks creating gaps in oversight and accountability" and could shield mixers, tumblers, and some DeFi businesses from AML requirements, per Bitcoin Magazine.
The opposition directly complicates the bill's vote math. Senators Mark Warner of Virginia and Catherine Cortez Masto of Nevada conditioned their support on law enforcement endorsing Section 604, per Bitcoin Magazine. Senate cloture requires 60 votes; Republicans hold 53 seats, leaving the bill seven Democratic crossovers short. Warner and Cortez Masto are among the most-cited swing votes.
Digital Chamber CEO Cody Carbone pushed back on X, writing that "Section 604 says NON-CUSTODIAL developers are not money transmitters. Those who are building tools are different than those running banks," per The Block. Bill sponsors had not issued a public statement as of the sources reviewed.