Key Insights: FOP backs CLARITY Act update, saying law enforcement authority remains protected. BRCA text stayed unchanged, leaving uncertainty over cited legislative revisions. US crypto bil
The CLARITY Act update gained fresh attention after the National Fraternal Order of Police (FOP) announced its support for the latest version of H.R. 3633, the Digital Asset Market Clarity Act.
The endorsement followed the organization’s review of revised language connected to the Blockchain Regulatory Certainty Act (BRCA). In a July 24 letter addressed to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, the FOP said its previous concerns had been addressed.
The group stated that the updated language preserves law enforcement’s ability to investigate crimes involving digital assets. However, the BRCA text itself remained unchanged in the bill version released on Wednesday, leaving uncertainty about the specific revisions referenced during the negotiations.
According to journalist Eleanor Terrett, the National Fraternal Order of Police said it reviewed clarifying language included in revised Section 10604, which amends the Blockchain Regulatory Certainty Act. According to the letter, the organization concluded that the provision does not restrict investigators or prosecutors from pursuing unlawful conduct involving digital assets.
The FOP said the clarification directly addressed concerns raised during earlier discussions over the legislation. As a result, it formally endorsed the version of the CLARITY Act and expressed support for its passage.
CLARITY Act Update | Source: X The organization also outlined several provisions that it believes strengthen law enforcement capabilities. These include measures targeting fraud involving digital asset kiosks and related activity. The bill also introduces anti-money laundering and sanctions compliance requirements across the digital asset sector.
The letter further highlighted provisions allowing digital asset companies and stablecoin issuers to delay suspicious transactions voluntarily or at the request of law enforcement. According to the FOP, temporary transaction delays could give investigators additional time to prevent fraud losses, recover stolen assets, and interrupt illicit financial activity.
The FOP’s letter also pointed to updates affecting seizure authorities and financial investigations. It said the revised legislation modernizes how digital assets are treated under Bank Secrecy Act authorities related to monetary instruments.
According to the organization, these changes help clarify that existing reporting and enforcement frameworks apply to digital asset activity. The letter also referenced provisions directing agencies to improve information sharing, coordinate responses to illicit finance risks, and strengthen international anti-money laundering and sanctions cooperation.
Title IX of the legislation received separate attention in the letter. The FOP said it creates a grant program to strengthen state and local digital asset enforcement capabilities, and it also establishes a digital asset law enforcement and national security training program alongside a digital asset cyber innovation center.
The organization noted that Title IX also includes measures designed to protect aging retirees from deception. It said these initiatives would provide frontline officers and local agencies with additional resources and expertise for investigating digital asset crimes.
The CLARITY Act update also addresses the status of certain non-controlling software developers and decentralized technologies. According to the FOP, the revised language makes clear that these provisions do not limit criminal investigations or prosecutions involving digital assets.
The organization added that liability remains for anyone intentionally transferring funds known to originate from criminal offenses or intended to support unlawful activity. It also cited the continued application of existing criminal statutes, including 18 U.S.C. § 1960.
Despite the endorsement, questions remain about the BRCA negotiations. Eleanor Terrett reported that the BRCA language itself remained unchanged in Wednesday’s bill release. As a result, it remains unclear which revisions the FOP referenced when stating that its earlier concerns had been resolved.
The CLARITY Act update now moves forward with backing from one of the law enforcement groups involved in earlier negotiations over the US crypto bill.
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