Catholics Tell Senate: Clarity Act Might Bankroll the Devil's Favorite Token ⛪

A coalition of 82 Catholic leaders and organizations has urged U.S. Senate leaders from both parties to oppose the Clarity Act, warning that the market structure bill could enable the financing of human trafficking and other criminal activity. In a letter sent Tuesday and first reported by Punchbowl News, the group, organized by the faith-based Alliance to End Human Trafficking, said "Catholic social teaching calls us to uphold solidarity, protect the vulnerable, and ensure that economic systems are ordered toward justice rather than exploitation." The leaders added, "The test of any financial system is not simply whether it generates wealth or innovation, but whether it safeguards human life and dignity."

The letter specifically targets a provision within the Clarity Act known as the Blockchain Regulatory Certainty Act (BRCA), which would exempt developers of decentralized crypto software from criminal prosecution. The signatories argued that the BRCA "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 provision has been described by multiple crypto industry leaders as a red line in negotiations, with participants stating they would not back the broader bill without it. Over the past year, the Trump Department of Justice has brought charges against several crypto software developers whose privacy tools have allegedly been used to facilitate money laundering and other unlawful transactions.

The Catholic objections add to a growing list of constituencies opposing the Clarity Act. Wall Street participants have pushed for restrictions on stablecoin rewards, Native American tribes have sought language limiting sports-based prediction markets, and some Democrats have demanded provisions addressing the crypto ventures of President Donald Trump and his family. Law enforcement groups have also raised concerns about the BRCA. Industry leaders have said that without passage by next month, the bill is unlikely to become law this year, given the November midterm elections.