The U.S. Judiciary Committee opposes Section 604 of the CLARITY Act

On January 17, the head of the U.S. Senate Judiciary Committee sent a letter to the Senate Banking Committee opposing Section 604 of the "Blockchain Regulatory Certainty Act," arguing that this provision would weaken federal regulations on money transfers. Senate Judiciary Committee Republican Chairman Chuck Grassley and lead Democratic member Dick Durbin pointed out in the letter that the provision aims to protect software developers from criminal liability due to third-party misuse of their products, but may undermine the current regulations' ability to hold unlicensed money transfer businesses accountable. The letter cited the Department of Justice's prosecution of Tornado Cash developer Roman Storm as an example, emphasizing the importance of existing regulations and urging the rejection of the relevant provision. The Banking Committee had originally scheduled a debate and vote on the bill for Thursday, but the agenda was canceled due to opposition.