Eighty-two Catholic leaders have written to the Senate’s top two figures asking them to reject one section of the crypto industry’s biggest bill, arguing it could help fund human trafficking.
The letter went to Majority Leader John Thune and Democratic Leader Chuck Schumer on Tuesday, June 23. The Alliance to End Human Trafficking, a faith-based network operating nationwide, organized it. Punchbowl News reported it first.
“Catholic social teaching calls us to uphold solidarity, protect the vulnerable, and ensure that economic systems are ordered toward justice rather than exploitation,” the signers wrote. They added that the test of any financial system is whether it safeguards human life and dignity, not just whether it creates wealth.
The provision at issue
The target is Section 604 of the Digital Asset Market Clarity Act, known as the Blockchain Regulatory Certainty Act, or BRCA. It would shield developers of decentralized blockchain software from liability for what users do with their tools, and would exempt them from criminal prosecution in some cases.
The coalition says that by taking non-custodial developers out of the money-transmitter category, the section removes the transaction monitoring and suspicious-activity reporting that anti-money-laundering rules depend on. The letter warns it “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.”
Many crypto industry leaders call the BRCA a red line and say they would not back the bill without it. Digital Chamber CEO Cody Carbone has argued that Section 604 simply stops developers who write software from being treated like traditional banks.
Law enforcement groups representing prosecutors, sheriffs and police chiefs sent a separate letter with similar worries.
Where the bill stands
The House passed the bill (H.R. 3633) in July 2025 by 294 to 134. The Senate Banking Committee cleared it on May 14, 2026, by a much closer 15 to 9. Supporters want a floor vote in the coming weeks.
The Catholic letter adds to a crowded list of objections. Wall Street wants language limiting stablecoin rewards. Native American tribes want limits on sports betting through prediction markets. Some Democrats insist the bill must restrict the crypto ventures of President Donald Trump and his family.
The bill still needs at least seven Democratic votes to reach the 60 required to end debate. Many industry leaders say that if it does not pass by next month, it is unlikely to become law this year, with the November midterms approaching.
Sources
- Crypto’s Clarity Act Has a New Enemy: Catholic Leaders – Decrypt
- Nearly 100 Catholic leaders oppose Clarity Act over trafficking concerns
- Why Nearly 100 Catholic Leaders Just Turned Against Crypto's CLARITY Act
