The revised CLARITY Act has gained backing from both the National Fraternal Order of Police [FOP]and the National Cryptocurrency Association [NCA], with the two organizations endorsing the legislation for different reasons.
The FOP said changes to the latest version of the bill addressed its concerns over law enforcement powers. At the same time, the NCA argued the legislation strengthens consumer protections and provides clearer rules for the digital asset industry.
Police group says revised bill strengthens enforcement powers
In a letter dated July 24, the National Fraternal Order of Police, which represents more than 382,000 law enforcement officers, urged Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren to support the revised CLARITY Act.
The organization said it had reviewed changes to the Blockchain Regulatory Certainty Act [BRCA] provisions and was satisfied that they would not limit law enforcement agencies‘ and prosecutors’ ability to investigate crimes involving digital assets.
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The FOP also highlighted provisions covering anti-money laundering and sanctions compliance, digital asset kiosks, seizure and tracing authorities, temporary transaction holds requested by law enforcement and new grant and training programmes aimed at strengthening digital asset investigations.
According to the letter, the revised legislation also establishes a digital asset cyber innovation center. It clarifies that protections for certain software developers do not shield those who intentionally facilitate criminal activity.
The organization said the latest amendments had satisfactorily addressed its earlier concerns and expressed support for the bills passage.
Crypto association highlights consumer protections
Separately, the National Cryptocurrency Association published testimony submitted to a House Financial Services subcommittee hearing. It argued that the CLARITY Act provides stronger consumer protections while reducing regulatory uncertainty.
The organization cited its own research claiming more than 67 million Americansown cryptocurrency. Also, 73%of respondents support stronger consumer protections, while 77%favor comprehensive legislation for digital assets.
The NCA said the legislation requires clearer disclosures from crypto platforms, introduces fraud warnings for crypto kiosks, preserves self-custody rights and maintains existing consumer protection authority for the Federal Trade Commission and Consumer Financial Protection Bureau.
It also argued that clearer regulatory rules would allow innovation to continue while giving consumers greater confidence when using digital assets.
Support grows from different stakeholders
The endorsements add to growing public support for the revised CLARITY Act from organizations with different priorities.
While the FOP focused on stronger investigative tools, anti-money laundering measures and law enforcement coordination, the NCA argued the legislation strikes a balance between consumer protection, innovation and regulatory clarity.
The House is expected to consider the revised market structure bill as lawmakers continue work on establishing a comprehensive regulatory framework for digital assets in the United States.
Final Summary
- The National Fraternal Order of Police endorsed the revised CLARITY Act, saying lawmakers addressed its concerns over law enforcement powers.
- The National Cryptocurrency Association said the legislation strengthens consumer protections and provides clearer rules for the digital asset industry.