Trump’s crypto adviser, Patrick Witt, has formally dismissed a revised legislative proposal from law enforcement groups aimed at making it easier to prosecute software developers under the CLARITY Act. The proposal, backed by key Democrats, sought to amend the Blockchain Regulatory Certainty Act (BRCA) by stripping protections that shield developers from criminal liability for crimes committed on platforms they build.
Witt rejected claims by Senator Catherine Cortez Masto that the revisions resulted from “productive negotiations” with the White House and Treasury, stating the administration’s position had been clear for weeks and that the latest language was “not even close” to meeting expectations. The core disagreement centers on whether developers who do not hold customer funds should be held accountable for illicit activities on their platforms. The Trump administration argues such builders must be protected to foster innovation, while law enforcement warns the current loophole could allow financial crimes to go unchecked.
The Fraternal Order of Police, the largest U.S. police organization, dropped its previous objections and now backs the bill, alongside groups like the National Organization of Black Law Enforcement Executives and the Federal Law Enforcement Officers Association. Over 160 former national security officials also wrote a letter supporting the legislation. However, the White House remains firm, prolonging the months-long deadlock and deepening uncertainty for crypto developers operating in the U.S.
