Anti-Trafficking Group Urges Changes to CLARITY Act Over Developer Liability Concerns

An anti-trafficking group is urging changes to the CLARITY Act, arguing the bill could weaken developers' legal liability.

CoinDesk reported on June 27 that Katie Boller Gosewisch, executive director of the Alliance to End Human Trafficking, raised concerns about Section 604 of the CLARITY Act. The provision says developers who do not directly control user funds are not money transmitters.

Gosewisch said the provision could give developers of platforms used for trafficking-related payments grounds to avoid accountability. She added that lawmakers should consider the possibility that criminal organizations could later try to use the language to evade criminal liability, regardless of the bill's original intent.

The Alliance to End Human Trafficking and Catholic Charities sent a letter laying out those concerns to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer, asking them to reconsider the bill, according to the report.