Nearly a hundred Catholic leaders have sent a letter to the US Senate opposing the BRCA clause in the Clarity Act

According to The Block, nearly 100 Catholic leaders have sent a letter to US Senate leaders opposing Section 604 of the Clarity Act, the Blockchain Regulatory Certainty Act (BRCA), arguing that it weakens regulatory capabilities to combat illegal financial activities such as human trafficking. The Anti Human Trafficking Alliance stated that the BRCA provisions create regulatory ambiguity and exemption loopholes, making it difficult for law enforcement agencies to monitor illegal financial flows related to trafficking, organized crime, child exploitation, and sanctions evasion. The focus of controversy lies in BRCA's creation of a safe harbor for non custodial developers, clarifying that they do not belong to currency transmitters. The encryption industry supports this clause, believing that it provides legal certainty for software developers and prevents innovation from leaking out.