[DigitalToday reporter Yoonseo Lee] The U.S. crypto market structure bill known as the Clarity Act has faced opposition from Catholic groups.

Decrypto, a blockchain media outlet, reported on Monday that 82 U.S. Catholic leaders and organisations sent a letter to bipartisan Senate leaders to convey their opposition to parts of the bill.

The letter said Catholic social teaching calls for maintaining solidarity, protecting vulnerable people and ensuring economic systems move toward justice rather than exploitation. It also said the financial system should be judged by whether it protects human life and dignity, not whether it creates wealth or achieves innovation.

They took issue with a provision known as the Blockchain Regulatory Certainty Act, or BRCA. It would exempt decentralised crypto software developers from criminal prosecution. Catholic leaders argued it could make it harder to monitor illicit financial flows such as child exploitation, sanctions evasion and organised crime.

The letter was drafted under the lead of a coalition of faith-based network groups. Catholic groups said the Clarity Act is designed to legalise most crypto activity in the United States, and broader developer immunity could effectively protect tools used for crime.

The dispute also overlaps with recent pushback from law enforcement agencies. The U.S. Department of Justice under the Trump administration has jailed several crypto developers over the past year who created software that can conceal on-chain transactions. Such programs have been used for criminal financing and money laundering. Decentralisation advocates counter that because crypto network transactions are basically public, such tools are needed to provide privacy protections comparable to bank accounts or cash.

The issue is that the BRCA is a key demand for the industry. Many crypto industry officials have said they will not support the overall bill if the provision is removed. For the Senate, reflecting concerns from religious groups and law enforcement could cost industry support, while accommodating industry demands could draw criticism that it widens channels for illicit funds.

The Clarity Act is now under pressure from multiple directions. Wall Street is demanding language be added to limit stablecoin rewards, and Native American tribes want provisions restricting prediction market operators from offering sports-based betting. Some Democratic lawmakers say the bill should include measures to limit profitable crypto businesses linked to U.S. President Donald Trump and the Trump family.

That has increased uncertainty over the bill's schedule. The industry believes that if the bill does not pass within next month, political calendars ahead of the November midterm elections could make it difficult to legislate it within the year. Against that backdrop, Catholic opposition shows the Clarity Act's biggest controversy is expanding beyond the scope of technology regulation to issues of controlling illicit finance and social responsibility.