CLARITY Act Secures Second Major Law Enforcement Backing as Senate Recess Deadline Nears

The Digital Asset Market Clarity Act has gained its second public endorsement from a major U.S. law enforcement organization, the Federal Law Enforcement Officers Association (FLEOA), just weeks before a critical Senate deadline. In a July 10 statement, FLEOA submitted a letter to the U.S. Senate Banking Committee endorsing the CLARITY Act while urging amendments to strengthen accountability in decentralized finance (DeFi) and preserve existing investigative powers.

“FLEOA expressing support for CLARITY and confirming what many of us know — this bill is strong on consumer protection and law enforcement,” said Ji Kim, CEO of the Crypto Council. The endorsement follows a similar letter from the National Organization of Black Law Enforcement Executives (NOBLE) nine days prior, helping counter arguments that the bill would weaken the government’s ability to police crypto crime.

In its statement, FLEOA said the current version “represents meaningful progress toward balancing technological innovation with public safety.” The group commended the committee for establishing a clear regulatory framework that promotes responsible innovation while preserving anti-money laundering, counterterrorism financing, sanctions enforcement, and investigative authorities. However, FLEOA also called for narrowing DeFi protections, clarifying accountability in decentralized systems, preventing firms from avoiding regulation by claiming decentralization, revising “specific intent” language to ease liability establishment, and explicitly affirming that the legislation does not limit federal investigative authority.

In June, four law enforcement organizations — including the National District Attorneys Association and the National Association of Assistant United States Attorneys — raised concerns about Section 604, which protects developers from liability for user illicit activity on decentralized platforms. The White House invited objecting groups to a late June meeting. Meanwhile, the Major County Sheriffs of America shifted its stance to neutral in July after initially opposing the bill.

The letter arrives less than four weeks before the Aug. 8 Senate recess, which industry insiders see as a critical milestone. “This is likely our last chance to get real legislation for digital assets on the books before 2030,” Senator Cynthia Lummis said on July 8. “If we fail to pass the Clarity Act, we are ensuring another country will write the rules for digital assets and we spend the next decade catching up.”