National Security Issue Brief: The Clarity Act Weakens Law Enforcement Authorities to Address Decentralized Mixers

National Security Issue Brief: The Clarity Act Weakens Law Enforcement Authorities to Address Decentralized Mixers

Decentralized mixing services have features that benefit "criminals who want to further distance themselves from potential law enforcement detection"

Read One-Pager Here (PDF)

Washington, D.C. - Today, the Minority Staff of the Senate Banking, Housing, and Urban Affairs Committee released a one-page analysis highlighting key ways in which the most recent text of the Digital Asset Market Clarity Act would weaken law enforcement tools related to decentralized mixers-and would signal that other countries can do the same in their own laws.

The current text of the Clarity Act not only weakens law enforcement tools to prevent illicit activity facilitated by the use of decentralized mixers, but also fails to address other core illicit finance issues identified in a report by the Banking Committee minority staff. The report draws on numerous open-source reports, law enforcement warnings, industry analyses, and government findings that together paint a stark picture of how digital assets and decentralized finance (DeFi) services are already being exploited - and how the current text of this bill would make the problem worse.

Read the new analysis here and below:

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