The White House convened law enforcement representatives Monday to address objections to Section 604 of the Digital Asset Market Clarity Act, according to CoinDesk. That section would exempt software developers who lack control over their tools from being classified as money transmitters under federal law, a protection drawn from the earlier Blockchain Regulatory Certainty Act.
The crypto industry treats Section 604 as non-negotiable for DeFi to operate legally in the US. Law enforcement agencies view it differently. The National Sheriffs Association wrote to Senate Banking Committee leadership in May that "no good reason supports giving mixers, tumblers, and DeFi a blanket exemption." The group acknowledged that some developers genuinely fall outside money-transmission activity but warned that "plenty of others are" engaged in conduct that triggers Bank Secrecy Act obligations.
White House crypto adviser Patrick Witt, who has led prior outreach to Wall Street and skeptical law enforcement contacts, told industry attendees earlier this month that police "should be the biggest cheerleaders" for Clarity because it "is really what is missing." His Monday meeting suggests the White House is trying to find middle ground before a compressed legislative window closes.
The math is tight. Passage requires 60 Senate votes, meaning Democrats must hold ranks for a bill that Republican leadership has backed. Only about four weeks of Senate floor time remain before the August recess. CoinDesk reported the timeline Monday without naming which law enforcement groups attended or what objections they raised during the session.
Beyond Section 604, unresolved sticking points include restoring the CFTC to full commissioner strength, an ethics rule barring senior government officials and the president from holding personal crypto assets, and treatment of stablecoin yield. President Trump's refusal to sign a separate housing bill without a voter-identification measure further strains congressional bandwidth and complicates the legislative calendar.