🇺🇸 U.S. TREASURY SLAMS SENATOR CORTEZ-MASTO CLARITY ACT PROPOSAL Does not preserve law enforcement's ability to prosecute bad actors. Guts protections for software developers and greenlights new liabilities. —Treasury spokesperson 🫡 @jenn_rosenthal

What happened

The U.S. Treasury publicly rejected Senator Cortez-Masto’s Clarity Act proposal, saying it would weaken law‑enforcement prosecution, remove existing protections for software developers, and create new liabilities.

Confirmed

Global impact / market context

If the act passes, it could expose software developers to lawsuits, raising compliance costs and possibly slowing innovation, while also limiting authorities’ ability to pursue cybercriminals, affecting overall market confidence in tech security.

Analyst inference

The Treasury’s criticism comes as Congress debates the Cortez-Masto Clarity Act, which aims to adjust liability rules for software developers. The debate occurs amid broader regulatory focus on tech and cybersecurity.

Confirmed

What to watch

1. Legislative response: Whether lawmakers amend the proposal to address Treasury’s concerns about law‑enforcement powers and developer protections. Analyst inference
2. Impact on tech firms: How potential changes to liability rules could affect software companies’ legal risk and investment in security features. Analyst inference
3. Regulatory environment: Future Treasury or agency guidance that might shape enforcement priorities for cyber‑crime and software liability. Analyst inference

Affected assets

• ACT — Act I The AI Prophecy

Evidence

• x.com