Trump's crypto adviser Patrick Witt rejects proposed CLARITY Act amendments that would expand criminal liability for crypto developers, citing insufficient protections for non-custodial software creators.
Regulation & Gov ·
Patrick Witt, Trump's crypto adviser, has rejected proposed amendments to the CLARITY Act, arguing they fall short of the administration's requirements for protecting non-custodial software developers. Witt disputed claims that the revisions resulted from constructive White House negotiations, characterizing the latest version as fundamentally misaligned with administration priorities. The dispute centers on whether developers who do not custody customer assets should face criminal liability for crimes committed through platforms they create.
Law enforcement organizations and Democrats backing the proposal contend that the amendments would strengthen prosecution capabilities against crypto-related financial crimes. The Fraternal Order of Police reversed its earlier stance to support the legislation, and over 160 former national security and intelligence officials have written to the Senate endorsing the bill. Opponents, including New York Attorney General Letitia James, warn that the measure could undermine state-level enforcement against digital asset fraud by constraining regulatory authority.
What remains unclear is whether further negotiation between the Trump administration and legislative backers will yield compromise language, or whether the deadlock over developer liability protections will persist. The precise mechanisms by which the revised act would alter prosecutorial standards, and the specific thresholds distinguishing custodial from non-custodial developer conduct, are not detailed in current public statements.