Key Highlights
- The Major Cities Chiefs Association (MCCA) endorsed the revised CLARITY Act after reviewing multiple drafts.
- The group said new law enforcement provisions addressed concerns raised during earlier discussions.
- The updated bill expands information sharing, strengthens AML requirements, and creates a federal working group on illicit crypto activity.
The Major Cities Chiefs Association (MCCA) has endorsed the latest version of the Digital Market Clarity (CLARITY) Act, saying recent revisions addressed several concerns raised by law enforcement as the Senate prepares to take up the legislation.
In a letter dated July 29 to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, the association said it reviewed every version of the bill before concluding that the latest draft contains meaningful improvements for investigators handling digital asset-related crimes.
Police chiefs say revisions address earlier concerns
The MCCA said its subject matter experts reviewed multiple drafts before concluding that the latest version adequately addressed the organization’s concerns.
According to the letter, the revised bill includes a new title focused on law enforcement, along with provisions that explicitly recognize state and local law enforcement agencies in several sections of the legislation.
The organization said these changes represent “a meaningful step” toward improving investigations involving digital assets.
New provisions target crypto-related crime
The group emphasized that most provisions would not immediately change day-to-day policing, but argued the legislation creates a stronger regulatory framework for cooperation between digital asset businesses and investigators.
According to the MCCA, the revised bill would expand information sharing between digital asset service providers and law enforcement while strengthening anti-money laundering (AML) and suspicious activity reporting requirements.
It would also establish a federal working group to address the illicit use of digital assets, study cryptocurrency mixers, improve authorities’ ability to temporarily freeze suspicious transactions, and introduce additional consumer protection measures for cryptocurrency kiosks.
The association said these measures would improve investigations while increasing accountability across the digital asset sector.
Support for CLARITY Act continues to broaden
The MCCA joins a growing list of organizations that have publicly backed the legislation.
Earlier this week, the American Bankers Association (ABA) expressed support for the CLARITY Act while continuing to seek targeted changes, particularly around stablecoin-related provisions affecting community banks.
Separately, White House digital assets adviser Patrick Witt challenged parts of the banking industry’s lobbying campaign, arguing that some objections to the legislation contradict the bill’s existing restrictions on stablecoin interest payments.
The endorsement from a national law enforcement organization broadens the coalition supporting the legislation beyond financial institutions and the crypto industry.
Senate negotiations continue
The Senate has not yet scheduled a final vote on the CLARITY Act, with lawmakers continuing negotiations over several outstanding provisions.
If passed, the legislation would establish comprehensive federal regulatory frameworks governing digital asset markets in the United States, including oversight responsibilities for the SEC and CFTC, while introducing new compliance requirements for crypto market participants.
With support now coming from banking groups, crypto industry organizations, and a national association representing major city police departments, the bill continues to gather momentum as lawmakers work toward finalizing U.S. crypto market structure legislation.
Also Read: Solana Institute Urges Senate CLARITY Act Vote Before August Recess
