Federal Law Enforcement Officers Group Backs CLARITY Act Before Senate Vote

The Federal Law Enforcement Officers Association, or FLEOA, has publicly backed the CLARITY Act, a US market-structure bill for digital assets. It is the second public endorsement from a law enforcement organization as lawmakers push to move the bill before the Senate's August recess.

Cointelegraph reported July 14 that FLEOA said in a July 10 statement it had submitted a letter to the Senate Banking Committee supporting the CLARITY Act. The group also called for changes to clarify accountability in decentralized finance, or DeFi, and preserve investigative authority.

Ji Kim, chief executive officer of the Crypto Council, said FLEOA's endorsement confirmed that the bill contains strong consumer-protection and law-enforcement provisions.

The move came nine days after the National Organization of Black Law Enforcement Executives, or NOBLE, backed the bill. The two endorsements counter criticism that the CLARITY Act would weaken authorities' ability to combat digital-asset crime.

FLEOA paired its support with a list of requested revisions. It urged lawmakers to narrow the scope of DeFi-related liability protections, prevent actors from evading regulation by claiming decentralization, revise language related to "specific intent" to make it easier to establish responsibility, and make clear that the bill would not restrict existing federal investigative powers.

In June, four law enforcement groups, including the National District Attorneys Association, raised concerns with the White House about Section 604 of the bill. The provision would shield developers from liability for illegal activity by users of decentralized platforms, drawing objections from investigative agencies. In July, the Major County Sheriffs of America shifted from initial opposition to a neutral position.

The deadline for action is approaching quickly. Senator Cynthia Lummis said on July 8 that if Congress fails to pass the CLARITY Act, other countries will write the rules for digital assets and the US will spend the next decade trying to catch up. She added that this may be the last chance to enact meaningful digital-asset legislation before 2030. The Senate recess begins Aug. 8.