The four major law enforcement organizations in the U.S. jointly wrote to the DOJ and the White House, stating that Section 604 of the Clarity Act may create loopholes for cryptocurrency crime investigations

The National Association of Attorneys General, the National Association of Assistant U.S. Attorneys, the International Association of Chiefs of Police, and the National Sheriffs' Association jointly sent a letter to the Department of Justice and the White House on Tuesday, warning that Section 604 of the Digital Asset Market Structure Clarity Act contains serious enforcement loopholes that could make it difficult for law enforcement agencies to investigate and prosecute crypto-related criminal activities. The letter pointed out that Section 604 includes broad exemption clauses that may allow individuals or entities assisting in the circulation of crypto assets to evade regulatory accountability, disrupting the investigative and enforcement powers that have long been relied upon.

The four organizations emphasized that their concerns are not aimed at developers who simply write or publish software code, but rather at the broad exemptions that may provide a shield for illegal activities. The core of the controversy lies in Section 604—the "Blockchain Regulatory Clarity Act" (BRCA) provision, which was originally a standalone bill but was later incorporated into the Clarity Act, aimed at providing a safe harbor for non-custodial developers, clarifying that they do not fall under money transmission entities. Law enforcement organizations believe this move will create obstacles for investigations into crypto crimes.

Additionally, the letter pointed out that several other provisions of the bill would "reduce transparency, weaken accountability mechanisms, and create loopholes in the anti-money laundering framework." On the same day, nearly a hundred Catholic leaders representing parishes across the country also issued a warning, stating that the bill could weaken protections against human trafficking. In response, White House cryptocurrency advisor Patrick Harker insisted that the Clarity Act is a bill that "supports regulation and supports law enforcement," emphasizing that the U.S. must proactively set standards or risk passively accepting the rules of other countries.