The CLARITY Act Won Over 2 Law Enforcement Groups This Week — Here Is What Changed

A major law enforcement organization has formally backed the long-anticipated CLARITY Act, breaking ranks with several other police and prosecutor groups that have raised concerns about the crypto market structure bill. 

The National Organization of Black Law Enforcement Executives, known as NOBLE, sent a letter to Senate Majority Leader John Thune earlier this week endorsing the legislation — becoming the first significant law enforcement body to publicly support it.

The Most Contested Provision In The CLARITY Act 

The endorsement carries weight precisely because it comes from within a community that has been divided on the bill. Law enforcement organizations have warned that the bill’s section 604 could complicate crypto crime investigations by narrowing the circumstances under which non-custodial software developers and blockchain infrastructure providers are treated as money transmitters. 

That provision draws from the Blockchain Regulatory Certainty Act (BRCA) and has become one of the most contested parts of the legislation. Supporters argue it protects developers who build blockchain tools without controlling customer funds. Critics say the same language could make it harder to trace money moving through decentralized systems.

NOBLE said its review found that the bill does not alter the core federal criminal authorities that investigators and prosecutors rely on daily — including statutes covering money laundering, unlicensed money transmitting businesses, conspiracy, aiding and abetting, and sanctions enforcement. 

Rather than weakening those tools, NOBLE argued, the CLARITY Act adds new ones. The letter cited expanded regulatory obligations, enhanced forfeiture authorities, new compliance requirements designed to improve transparency, and additional oversight of crypto ATMs, as provisions that would give law enforcement more investigative visibility, not less.

NOBLE also called for sustained collaboration between Congress, the Justice Department (DOJ), the Treasury, FinCEN, state and local agencies, and the industry itself to make sure that whatever framework emerges is actually implementable on the ground. 

Here Is What Comes Next 

NOBLE was not the only organization to shift its position this week. The Major County Sheriffs of America moved from opposition to a neutral stance on the CLARITY Act after what it described as continued discussions in recent days around Section 604. 

In a letter to Senate Banking Committee leaders, the group said its ongoing review of the bill suggests there is still an opportunity to strengthen the legislation in ways that serve both responsible innovation and the practical needs of state and local law enforcement. 

The timing of both shifts matters. The White House had been pushing for the CLARITY Act to pass by July 4 — a deadline that has now come and gone with negotiations still ongoing. 

The Senate remains in recess until July 13, and the CLARITY Act still needs a merged text combining the Banking and Agriculture committee versions, a floor vote requiring at least 60 senators, and House action after that. 

Galaxy Digital recently cut its odds of passage this year to 50-50, citing the compressed calendar and competing Senate priorities. Whether the law enforcement movement this week is enough to shift those odds — or simply reflects negotiations that have been quietly progressing while the calendar keeps tightening — remains to be seen.

Featured image generated with OpenArt.