A coalition of Catholic organizations and anti-human trafficking advocates is urging Senate leaders to reconsider portions of the Digital Asset Market Clarity Act, adding a new voice to the increasingly diverse opposition confronting one of the cryptocurrency industry’s top legislative priorities.
In a June 23 letter to Senate Majority Leader John Thune and Senate Democratic Leader Charles Schumer, more than 80 Catholic leaders, organizations and advocates warned that provisions in the House-passed Clarity Act could weaken safeguards against illicit finance and create opportunities for human traffickers and other criminal organizations to exploit digital asset networks. The letter was organized by the Alliance to End Human Trafficking, a nationwide Catholic anti-trafficking network.
The intervention places religious organizations alongside a growing list of groups raising concerns about the legislation, including law enforcement organizations, Wall Street interests, Native American tribes and some congressional Democrats. The debate highlights the increasingly complex political coalition forming around crypto regulation as Congress seeks to establish a comprehensive framework for digital asset markets.
At the center of the Catholic leaders’ objections is Section 604 of the Clarity Act, a provision commonly known as the Blockchain Regulatory Certainty Act, or BRCA. The measure would provide legal protections for developers of decentralized blockchain software and infrastructure by limiting circumstances under which they could be held liable for activities conducted by users of their software.
According to Decrypt, crypto industry advocates view the provision as essential to protecting software developers who create decentralized applications and privacy-enhancing tools. Many industry groups have indicated the BRCA is a critical component of the broader market structure bill and have warned they would oppose legislation that removed the provision.
The Catholic coalition, however, argues that the measure could have unintended consequences for efforts to combat trafficking and other forms of criminal activity.
“We are particularly concerned that certain provisions under Section 604 could create broad carveouts and regulatory ambiguities that 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,” the letter states.
The signatories emphasized that they are not opposed to financial innovation or blockchain technology itself. Rather, they contend that Congress should ensure emerging financial systems include adequate safeguards against criminal misuse.
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“Transparency, accountability, and strong anti-money laundering protections are essential to building public trust in emerging financial systems and ensuring these technologies contribute to the common good,” the letter says.
The coalition cited Catholic social teaching regarding the protection of vulnerable populations as a source of its objections. Human trafficking remains a significant concern for religious and anti-trafficking organizations, which argue that criminal enterprises increasingly use sophisticated digital tools and decentralized financial systems to obscure transactions and evade law enforcement detection.
The concerns mirror arguments previously advanced by some law enforcement organizations that have criticized legal protections for developers of privacy-enhancing cryptocurrency tools, per Decrypt. Federal prosecutors have recently pursued cases against developers of software designed to increase transaction privacy on blockchain networks, arguing that such tools can facilitate money laundering and other illicit activity.
The Catholic leaders’ intervention arrives at a critical moment for the Clarity Act. Industry supporters have been pressing Congress to advance the legislation before lawmakers turn their attention to the 2026 midterm elections. According to Decrypt, many crypto industry leaders believe the bill’s prospects could diminish significantly if it is not enacted in the coming weeks.
The dispute also underscores a broader challenge facing lawmakers crafting digital asset regulations: balancing support for technological innovation and U.S. competitiveness with concerns about consumer protection, financial crime and public accountability. As the Clarity Act advances through Congress, the debate over the BRCA provision is emerging as one of the most consequential flashpoints in determining whether that balance has been properly struck.
