FLEOA backs CLARITY Act, urges amendments Senate vote

A major federal law enforcement association has endorsed a key cryptocurrency regulatory bill while urging specific changes to ensure it does not hinder criminal investigations, adding momentum to the legislation as it faces a critical deadline before the Senate's August recess. The Federal Law Enforcement Officers Association (FLEOA), representing tens of thousands of officers, submitted a letter to the Senate Banking Committee on July 10 expressing support for the Digital Asset Market Clarity Act, commonly called the CLARITY Act.

The association stated the bill represents meaningful progress toward balancing technological innovation with public safety. However, FLEOA's endorsement is conditional, as it requested revisions to several provisions. The group specifically asked lawmakers to strengthen accountability rules for decentralized finance (DeFi) platforms, prevent companies from avoiding regulation by claiming to be decentralized, and explicitly affirm that the legislation does not reduce existing federal investigative powers. FLEOA emphasized that agencies must retain full authority to pursue criminal cases, enforce anti-money laundering rules, and combat terrorism financing.