White House pushes Clarity Act talks with law enforcement as Senate vote nears

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White House Clarity Act Talks

Highlights

White House convenes law enforcement Monday to address disputes over Section 604 of the Digital Asset Market Clarity Act, especially developer liability.
Senate Majority Leader John Thune may advance the Clarity Act in coming weeks, with a vote on crypto market structure legislation targeted for July needing 60 votes.
Conflict-of-interest and developer liability provisions remain contentious, with lawmakers and groups like the National Sheriffs Association demanding stricter safeguards and exemptions.

White House outreach on disputed crypto provisions

As reported by CoinDesk, the White House has invited law enforcement organizations to a Monday meeting aimed at resolving objections to the Digital Asset Market Clarity Act, according to a person briefed on the plan. The discussions center on Section 604, known as the Blockchain Regulatory Certainty Act, which seeks to shield software developers from being treated as money transmitters when they do not control the tools they create.

That language remains a flashpoint for some law enforcement groups. The National Sheriffs Association said in a May letter to Senate Banking Committee leaders that there is "no good reason" to give mixers, tumblers and DeFi a blanket exemption, while acknowledging that some developers are not engaged in activity that should trigger Bank Secrecy Act regulation.

White House officials, particularly lead crypto adviser Patrick Witt, continue efforts to keep the bill advancing in the Senate. Industry groups including the Blockchain Association argue the legislation adds new tools to pursue bad actors and that failing to pass a new law would leave enforcement agencies facing continued uncertainty.

Senate timetable and political hurdles

Backers of the bill are also working against a tight legislative calendar. Senate Majority Leader John Thune is reportedly considering bringing the Clarity Act to the floor in the coming weeks, and Banking Committee Chairman Tim Scott said on X on Monday that the Senate should vote on crypto market structure legislation in July.

The measure needs 60 votes to pass the Senate, which means it requires meaningful Democratic support even as criticism continues from opponents such as Senator Elizabeth Warren. Debate is still active over the developer liability language, strengthening the Commodity Futures Trading Commission, and an ethics provision that would bar senior government officials, including the president, from personal interests in the crypto sector.

Some lawmakers say they will not support the bill without tougher conflict-of-interest safeguards. The broader congressional environment is also unsettled by President Donald Trump's refusal to sign a housing affordability bill unless lawmakers approve a voter-identification measure, leaving open questions about how he may handle other legislation that reaches his desk.

In our earlier coverage, we examined the CFTC’s move that opened the door for cryptocurrency perpetual futures to expand in the U.S., including approvals and a pathway for registered platforms to list similar contracts. We noted how that shift quickly changed competitive dynamics among exchanges and heightened scrutiny of risk controls and investor protection for high-leverage products tied to volatile crypto assets.

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