CLARITY Act Wins Another Law Enforcement Group — Fraternal Order of Police Just Said Yes

The CLARITY Act picked up another law enforcement endorsement Friday, this time from the National Fraternal Order of Police — one of the largest and most influential law enforcement organizations in the United States, representing more than 382,000 members. 

The FOP addressed its letter to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, stating that revised language in Section 10604 of the updated CLARITY Act had satisfied the concerns it raised during earlier negotiations. 

Why The FOP Said Yes This Time 

The specific changes that moved the FOP center on several areas. The revised bill clarifies that protections for non-controlling software developers and decentralized infrastructure do not restrict law enforcement from investigating criminal activity, prosecuting bad actors, or applying existing federal criminal statutes to illegal conduct involving digital assets. 

The CLARITY Act explicitly preserves liability for anyone who knowingly facilitates the transfer of funds from criminal activity or intends to promote unlawful conduct — the line law enforcement groups had been pushing for throughout negotiations.

Beyond the BRCA clarification, the FOP pointed to several other provisions in the updated draft that it said strengthened law enforcement’s hand. 

The CLARITY Act gives digital asset companies and stablecoin issuers protection from liability when they voluntarily delay suspicious transactions or act at the request of law enforcement — a feature the FOP described as particularly valuable given how quickly digital assets can move across jurisdictions. 

A temporary hold on a suspicious transaction can give investigators the time needed to prevent fraud, recover stolen funds, or disrupt criminal networks before the trail goes cold.

CLARITY Act Keeps Adding Law Enforcement Support 

The updated CLARITY Act text also addresses digital asset kiosks — the crypto ATMs that have increasingly been used in fraud schemes targeting elderly victims — and includes anti-money laundering and sanctions compliance requirements across the digital asset ecosystem. 

The bill updates how digital assets are treated under Bank Secrecy Act authorities for seizure, tracing, and financial crime investigations, and includes measures to improve information sharing and strengthen international coordination on illicit finance.

Title IX of the revised bill was specifically highlighted by the FOP as a meaningful addition. It establishes a grant program for state and local digital asset enforcement, a dedicated training program for law enforcement and prosecutors, a digital asset cyber innovation center, and targeted protections for elderly Americans against crypto fraud schemes — all aimed at equipping frontline officers and local agencies with the tools and expertise to investigate digital asset crimes.

The FOP’s endorsement adds to a growing list of law enforcement organizations that have shifted toward the CLARITY Act in recent weeks. NOBLE, the Major County Sheriffs of America, and FLEOA all moved toward supporting the legislation earlier this month. 

The National Sheriffs’ Association remains opposed, and its recent video describing cryptocurrency as the “cartel currency of choice” has complicated the path to securing votes from Democratic senators Catherine Cortez Masto and Mark Warner, who have made law enforcement concerns a condition of their support.

The bill itself remains short of the 60 votes needed to pass. Seven Democratic negotiators issued a joint statement this week saying the current text falls short on ethics, consumer protection, and illicit finance. 

Galaxy Research cut its odds of 2026 passage to 30% on Thursday. The practical deadline to begin the floor process, according to the firm’s Head of Research Alex Thorne, is July 30 — not August 7.

Featured image generated with OpenArt.