Senate Moves CLARITY Act, Allocates $150M for Crypto Fraud

A major cryptocurrency regulatory bill is advancing in the U.S. Senate with a significant new focus on funding law enforcement to combat fraud. The Digital Asset Market Clarity Act, or CLARITY Act, would allocate $150 million to agencies tracking illicit finance in digital assets, according to Senator Cynthia Lummis, a key proponent.

The funding is intended to bolster the capabilities of agencies like the Financial Crimes Enforcement Network (FinCEN), the FBI, and the Department of Justice. It would support expanded anti-money laundering programs, blockchain analytics tools, and a pilot program for firms to share threat data with federal investigators. The announcement comes amid rising concerns over crypto-related crime, with Americans reporting $9.3 billion in losses to such fraud in 2024, according to FBI data, and seniors being disproportionately affected.

The broader legislation, which passed the House of Representatives in July 2025 by a vote of 294-134, seeks to establish the first comprehensive federal regulatory framework for digital assets. A central provision aims to resolve long-standing jurisdictional disputes by assigning oversight of digital asset securities and...