CLARITY Act Gains Second Law Enforcement Backer as 34,000-Officer FLEOA Endorses Bill

CLARITY-ACT News

The Federal Law Enforcement Officers Association has endorsed the CLARITY Act, becoming the second major law enforcement group to back the digital-asset market-structure bill ahead of a Senate vote. In a July 10 letter to the Senate Banking Committee, the association — which represents more than 34,000 active and retired federal officers across over 65 agencies — called the legislation meaningful progress toward balancing digital-asset development with public safety. The move stiffens momentum behind H.R. 3633, formally the Digital Asset Market Clarity Act, as lawmakers weigh whether to advance the measure before the chamber breaks for its August recess and the year’s legislative calendar tightens.

The endorsement came with conditions. The officers’ group urged the Senate to sharpen accountability rules for decentralized finance, warning that firms should not dodge oversight by branding controlled services as decentralized. It asked lawmakers to replace the bill’s specific-intent standard — a test requiring prosecutors to prove deliberate wrongdoing — with an existing knowledge standard that is easier to meet. The association also pressed Congress to state plainly that the measure would not weaken federal investigative powers, insisting agencies keep authority over anti-money-laundering rules, sanctions enforcement and counterterrorism financing. National President Mathew Silverman said officers still need tools to pursue complex financial crimes.

FLEOA’s support follows the endorsement earlier in July from the National Organization of Black Law Enforcement Executives, or NOBLE, the first major policing body to publicly back the bill. Ji Kim, chief executive of the Crypto Council for Innovation, said the two endorsements showed the measure was strong on both consumer protection and law enforcement. The backing helps blunt an opposing argument that the framework would hamstring criminal probes. In June, four other law enforcement groups warned the White House that Section 604 could shield developers too broadly and complicate investigations — a rift the Senate must still bridge before any floor vote.

President Donald Trump added his weight to the effort on July 13, posting on Truth Social that the Senate should pass the CLARITY Act. He framed the vote partly as a tribute to Republican Senator Lindsey Graham of South Carolina, who died on July 11, calling him a major supporter of the legislation. Trump also cast the bill as a matter of strategic competition, arguing the United States cannot let China seize leadership in digital assets and artificial intelligence. The intervention signals White House determination to secure a market-structure law after an earlier target of signing the measure by July 4 slipped without a vote.

The bill has already cleared one chamber. The House passed the Digital Asset Market Clarity Act in July 2025 by a bipartisan 294-134 vote, sending it to the Senate. In May 2026, the Senate Banking Committee advanced the measure 15-9, again with support from both parties, leaving a full floor vote as the final step. Passage there requires 60 votes, a threshold Republicans cannot reach alone, so the outcome hinges on winning over a bloc of Democratic senators. Unresolved disputes over Section 604’s developer protections and ethics provisions guarding against official conflicts of interest continue to slow negotiations.

White House crypto adviser Patrick Witt called this a critical week for the CLARITY Act, noting it coincides with the one-year anniversary of the GENIUS Act, the stablecoin law enacted in 2025, and warning Congress it cannot afford further delay. With the original July 4 deadline missed, attention has shifted to an August 6 target and the Senate’s recess, widely seen as the last realistic window for action this year. Republican Senator Cynthia Lummis cautioned that failure could hand rule-writing to other nations, warning the United States would then spend the next decade catching up on digital-asset policy.

As legislation rather than a tradeable token, the CLARITY Act carries no price chart, so COINOTAG’s proprietary 42-indicator composite scoring engine returns no support or resistance levels for it — our read here is on the market backdrop the bill would land in. That backdrop is defensive: our aggregate data puts the Fear & Greed Index at 22 out of 100, deep in Extreme Fear, while Bitcoin dominance sits at 69.6%, a sign capital is huddling in the majors and away from the broader altcoin complex. Total crypto market value stands near $1.81 trillion. A clear Senate passage could ease regulatory overhang and lift risk appetite; a stalled vote would likely reinforce the current bear-market caution until the August window closes.