The CLARITY Act Stalls in the Senate, Industry Groups Express Concern Over Removal of Section 604

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CFT concerns have resurfaced as the CLARITY Act remains stalled in the Senate, one year after its passage in the House. Coin Center and the Blockchain Association warn that removing Section 604 could undermine open-source innovation. CertiK’s Stefan Muehlbauer stated that developers could become subject to BSA obligations if the provision is eliminated. Openpayd’s Iana Dimitrova emphasized the need for a federal framework as stablecoins increase in cross-border usage. MiCA’s regulatory approach in the EU is frequently cited as a potential model. The bill also addresses accounting standards and revokes the SEC’s SAB 121 guidance. Gomining’s Mark Zalan highlighted gaps in Bitcoin taxation.

One year after the U.S. House of Representatives passed the CLARITY Act, the bill remains stalled in the Senate. Coin Center and the Blockchain Association view Section 604 as a critical provision protecting open-source innovation. Stefan Muehlbauer, CertiK’s Head of U.S. Government Affairs, stated that removing Section 604 conflates software development with financial services, subjecting developers to the Bank Secrecy Act. Iana Dimitrova, CEO of Openpayd, said that the growing use of stablecoins for cross-border value transfers underscores the urgent need for a federal regulatory framework. The bill addresses accounting standards by acknowledging that the SEC’s Staff Accounting Bulletin SAB 121 has been rescinded. Mark Zalan, CEO of Gomining, noted that Bitcoin still faces regulatory gaps, such as in tax treatment.

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