The odds of passing the Digital Asset Market Clarity Act have now dropped to 35% at Polymarket, as the US Department of Justice (DoJ) has expressed concern about the spread of cryptocurrency crimes.
source: Polymarket
Clarity Act weakens anti-money laundering (AML) framework: Department of Justice
In an email to the US Treasury Department, the Justice Department said the current version of the bill “would impose a greater burden of proof on prosecutions” in money laundering cases.
The agency specifically highlighted Section 604 of the law, which grants broad exemptions and safe harbor legal protections to non-custodial developers, decentralized services, mixers, and automated protocols. He – she male Such language would tie the hands of federal prosecutors who uphold anti-money laundering frameworks.
The latest warning follows a similar warning issued on June 23 by a coalition of four law enforcement agencies and Catholic groups.
The crypto lobby responds
However, a hearing was held today with Representative William Timmons in attendance second Invoice. His argument, like many of his supporters, is that it maintains America’s leading position in the global economy.
Additionally, Dante DiSparte, chief strategy officer at Circle, said the bill actually strengthens national security because it requires stablecoins to be backed 1:1 by safe assets such as US Treasuries.
To address the Ministry of Justice’s warnings Ethical concerns Around President Trump, senators are actively working to improve the text of the bill. The amendments include provisions requiring the US Securities and Exchange Commission (SEC) and the Treasury Department to jointly draft specific anti-money laundering rules for decentralized platforms.
Furthermore, the text expands the Treasury’s authority to penalize platforms deemed high-risk for illicit financing. Finally, any entities that retain control of the crypto platform code will be required to comply with the Bank Secrecy Act (BSA).
Lawmakers are working under tight timelines, and the bill’s next hearing is scheduled for next week. If the bill doesn’t pass, August 7 will be the next hard deadline to pass the bill, right before Congress takes its summer recess.
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