Does the Clarity Act Have a Human Trafficking Blind Spot?

Description

CoinDesk's The Policy Protocol hosts Rebecca Rettig and Renato Mariotti open with two hot topics: Coinbase's SEC-registered AI agentic trading launch and tribal gaming operators' letter to Senators Thune and Schumer demanding that the CLARITY Act include a prohibition on prediction markets. Then Katie Boller Gosewisch, Executive Director of the Alliance to End Human Trafficking, joins to challenge CLARITY's Section 604, arguing that shielding DeFi developers from money-transmitter liability creates a "duty of care" gap that traffickers can exploit. Plus, Rebecca and Renato close by naming Meta as their Person of the Week for its reported move into points-based prediction markets. - Check out CoinDesk's latest episode of Public Keys from the NYSE: https://www.youtube.com/watch?v=75LrBmSScvY&list=PLZWrc_gWChqnim-9ZbIKZTOrPA7IgFKVR&pp=sAgC - Register now for CoinDesk’s Policy and Regulation event on September 22, 2026: https://policy-regulation.coindesk.com/. - Timecodes: 00:00 Welcome to The Policy Protocol 00:51 This Week: AI Trading, Prediction Markets, Human Trafficking 01:15 Coinbase Launches AI Agentic Trading 02:22 SEC-Registered AI Agents and the Hallucination Problem 03:43 Tribes Concerns Over Clarity Act 05:30 Rebuttals to the Tribes' Clarity Concerns 06:23 Katie Boller Gosewisch Joins the Show 07:31 Section 604: The Liability Shield Traffickers Could Exploit 08:59 Are DeFi Developers Money Transmitters? 09:52 What Section 604 Actually Says, and What It Doesn't 10:54 Should We Reinstate a Human Trafficking Coordinator? 11:30 Duty of Care and the 'Turning a Blind Eye' Problem 13:07 The Roman Storm/Tornado Cash Case as the Test 14:37 Future Loopholes and the Reasonable Doubt Risk 15:28 Cryptocurrency, Anonymity, and Rising Online Trafficking 16:02 Blockchain Is Transparent, and That Helps Law Enforcement 17:39 Person of the Week: Meta 19:58 The Points-Based Prediction Market and What Meta Could Unlock - #cryptocurrency #digitalfinance #finance #bitcoin #crypto Subscribe to CoinDesk on YouTube: https://www.youtube.com/user/CoinDesk?sub_confirmation=1 CoinDesk is the leading digital media, events and information services company for the crypto asset and blockchain technology community. Twitter: https://www.twitter.com/coindesk LinkedIn: https://www.linkedin.com/company/coindesk Instagram: https://www.instagram.com/coindesk Facebook: https://www.facebook.com/CoinDesk Newsletters: https://www.coindesk.com/newsletters CoinDesk Podcast Network: https://open.spotify.com/show/2jyIhkvAQhed8AWDZiPpSP Public Keys: https://open.spotify.com/show/1rqYzRV10nfKfoTpFXZhTE Markets Daily Crypto Roundup: https://open.spotify.com/show/7sDXM8BlxsUqzL2IqmLqwE The Policy Protocol: https://open.spotify.com/show/3Fh8ffulAWcCqMu0uVuwoj