Police Group Backs CLARITY Act Over Law Enforcement Protections

The National Fraternal Order of Police (FOP) has backed the latest version of the CLARITY Act, giving the crypto market structure bill fresh support from a major law enforcement group. 

The endorsement came Friday as U.S. lawmakers consider the crypto market structure bill ahead of a possible Senate vote before the August recess.

In a letter addressed to Democratic senators Elizabeth Warren and Timothy Eugene Scott, the FOP said group said the draft gives state and local law enforcement better tools to protect consumers and investigate financial crimes involving digital assets. It also said the bill would help local agencies work more closely with federal law enforcement when dealing with crypto-related crimes. 

“The latest version of the ‘Clarity Act’ includes several provisions that improve the ability of State and local law enforcement to protect consumers, investigate financial crimes, and coordinate with their Federal partners,” the FOP wrote.

The FOP also pointed to new protections for people who fall victim to fraud involving digital asset kiosks and related activities. The bill would also introduce anti-money laundering and sanctions rules across the digital asset industry. 

Crypto groups add their support 

Meanwhile, the FOP is not the only group supporting the latest draft. The Crypto Council for Innovation, Blockchain Association, and Digital Chamber also backed the bill on Friday. The groups said the legislation is needed to create a federal framework for protecting consumers in the digital asset market as more Americans use and invest in crypto.

However, the bill still faces strong political opposition.

Coinbase CEO Brian Armstrong also reacted to the FOP’s support. “Law enforcement recognizes that CLARITY strengthens the tools at their disposal (about 70 pages of the bill dedicated to this),” Armstrong wrote. “One more objection overturned.”

Ethics rules remain a major political issue 

The latest draft includes a ban on U.S. officials and their families issuing or promoting crypto assets. 

The provision addresses concerns from Democratic lawmakers who have argued that President Donald Trump and his family have benefited unfairly from crypto businesses. The CLARITY Act has already faced months of delays. 

Republicans passed an earlier version last year, but the bill later became stuck over disagreements about stablecoins. Banking executives have warned that crypto companies could attract customers away from traditional banks by offering yield on stablecoin products.

Coinbase also pulled its support for the bill in January after clashing with banking leaders who wanted stablecoin yield to be banned.

Now, the biggest challenge is the Senate vote.

The Senate vote is still the biggest hurdle 

The bill needs 60 votes to move forward but is currently nine votes short. Republicans account for 51 of the 53 votes supporting the legislation, while no Democrat has publicly confirmed support for the latest draft. 

At least 12 Democrats have said they oppose or strongly criticize the current version, while another 25 have not publicly said how they will vote.

Republicans want to bring the bill to the Senate floor before lawmakers leave for their August recess. Democrats, however, say the latest version still needs major changes.

The FOP’s support gives the CLARITY Act another important endorsement, but the bill still needs Democratic votes to reach the 60-vote mark. With the Senate deadline approaching, lawmakers now have limited time to decide whether the latest changes are enough to push the long-awaited crypto market structure bill forward.

Also Read: Crypto Expert Cuts CLARITY Act Odds to 30% as Senate Clock Ticks

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