Nuns, clergy and lay leaders have delivered a letter to the Senate’s two top leaders asking them to rethink one provision of the crypto market-structure bill. Nearly 100 Catholic leaders signed it.
The letter went on Tuesday to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer, delivered by the Alliance to End Human Trafficking, a coalition supported by Catholic organizations. Signatories include leaders of the Sisters of Saint Joseph of Philadelphia, the Sisters of the Blessed Virgin Mary and the Congregation of Sisters of St. Agnes.
The provision at issue
Their target is Section 604 of the Digital Asset Market Clarity Act, H.R. 3633, also called the Blockchain Regulatory Certainty Act. It sets a legal safe harbor stating that noncustodial software developers are not money transmitters. The letter argues this could open carveouts and regulatory ambiguity that make it harder to investigate and prosecute crypto-related crimes tied to human trafficking, organized crime, child exploitation and sanctions evasion.
“The Catholic Church has long taught that economic systems and markets must ultimately serve the human person, especially the poor, vulnerable, and those at greatest risk of exploitation,” the coalition wrote. It urged senators to keep tools that help monitor illicit financial activity while still allowing responsible financial innovation. Coverage of the Alliance’s position says it is not asking for the bill to be killed, only amended.
Industry backers see it differently. They say the safe harbor gives developers of noncustodial tools legal certainty and keeps them from being pushed offshore. Cody Carbone, chief executive of the Digital Chamber, posted on X that “Section 604 says NON-CUSTODIAL developers are not money transmitters.” He stressed the line between people who build software tools and those who hold or transmit customer funds.
Section 604 began as a standalone bill and was later folded into the larger Clarity Act. Lawmakers have to decide whether to keep it, change it or remove it.
Where the bill stands
The House passed the Clarity Act in July 2025 by a vote of 294 to 134. The bill would end the turf fight between the SEC and the CFTC over digital assets by classifying many tokens, Bitcoin and Ethereum among them, as commodities with the CFTC as primary overseer. It also sets registration categories for intermediaries such as exchanges and brokers, and a path for some assets to move from security to commodity status depending on how decentralized they are.
The Senate Banking Committee cleared it on May 14, 2026, by 15 to 9. That was a far tighter margin than the House result. Crypto Briefing reported that senators in both parties have raised concerns, including ethics questions, and that a full Senate vote remained uncertain as of mid-June 2026 with budget talks and other financial regulation competing for floor time.
Supporters note that existing anti-money laundering rules still apply to registered crypto intermediaries under federal law. The Alliance’s letter suggests anti-trafficking groups do not think that goes far enough.
No formal government response to the Catholic leaders has been made public.
Sources
- Nearly 100 Catholic Leaders Fight the Clarity Act Over Trafficking Safeguards | The Currency analytics
- Nearly 100 Catholic Leaders Oppose Clarity Act Crypto Safe Harbor
- Nearly 100 Catholic leaders oppose Clarity Act over trafficking concerns
