WALSH: The CLARITY Act Would Open Doors to Crypto Corruption

By John Walsh

As Colorado’s U.S. Attorney during the Obama Administration – and today as Denver’s District Attorney – my job has always been to protect our community and to ensure the fair and just enforcement of the law. The work I do is grounded in the fundamental Constitutional principle that justice must apply equally to everyone. Whether we are tackling an organized crime ring or fighting sophisticated financial fraud, the wealth or status of the accused has no bearing on how my office treats them under the law.

Unfortunately, a bill now before the U.S. Senate called the CLARITY Act would set up rules for cryptocurrency that benefit bad actors who use crypto to commit crimes. Even worse, it turns a blind eye to public corruption. 

The CLARITY Act gives special treatment to the cryptocurrency industry by carving it out of the rigorous anti-money laundering and anti-fraud rules that have applied to traditional banks for decades. From my own experience, I can tell you that the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulations are vital tools used by prosecutors and law enforcement to track criminal networks, stop drug trafficking, and disrupt terrorist financing. The bill would hamper the ability of federal and state law enforcement who are working to fight crypto fraud and scams every single day.