The largest US police union has dropped its opposition to the CLARITY Act, throwing its support behind the digital asset bill after securing reassurances that law enforcement powers over cryptocurrency-related crime will not be weakened.
The National Fraternal Order of Police (FOP), which represents more than 382,000 officers, has formally endorsed the latest version of H.R. 3633 – the Digital Asset Market Clarity Act – in a move that could bolster the legislation’s standing on Capitol Hill, even as its passage this year looks increasingly unlikely.
In a letter dated 24 July to Senate Banking Committee chairman Tim Scott and ranking member Elizabeth Warren, FOP National President Patrick Yoes said the union now backs the measure, arguing it preserves investigative authority while giving agencies new tools to tackle offences involving digital assets.
The FOP’s reversal follows a review of language linked to the Blockchain Regulatory Certainty Act (BRCA), which is folded into the broader package. The union said revised Section 10604 – which amends the BRCA – “does not restrict law enforcement agencies or prosecutors from addressing illegal conduct involving cryptocurrencies”, and that this clarification directly addressed earlier concerns.
Questions over what actually changed
The shift in position has, however, highlighted uncertainty over what has been altered in the text. Former Fox Business reporter Eleanor Terrett reported that BRCA-related provisions appeared unchanged in the version of the bill released on Wednesday, noting it was unclear which amendments the union was citing in its endorsement.
That discrepancy has left open the possibility that the FOP may be relying on language added at an earlier drafting stage, on separate assurances from sponsors, or on a different interpretation of existing clauses. Neither the FOP letter nor Terrett’s reporting identified any newly modified passage beyond the reference to Section 10604.
Despite that ambiguity, the union made clear why it now views the package as beneficial for policing. It said federal, state and local investigators require explicit authority and workable mechanisms as they confront fraud, organised crime and illicit finance routed through crypto networks.
Focus on kiosks, anti-money laundering and transaction holds
Among the provisions highlighted, the FOP pointed to new safeguards targeting fraud associated with digital asset kiosks, a segment of the market that has drawn growing attention from regulators and police.
The bill, according to the union, also extends anti-money laundering (AML) and sanctions compliance requirements across parts of the crypto industry that have previously operated in more lightly regulated spaces.
Crucially for investigators, the legislation would give digital asset firms and stablecoin issuers protection from liability when they voluntarily pause suspicious transfers or act on a law enforcement request to delay a transaction. The FOP argued that, given the speed at which cryptocurrencies can move across borders and platforms, temporary holds could be vital in preventing losses, recovering stolen funds and disrupting criminal networks before money disappears beyond reach.
Bank Secrecy Act and international co‐operation
Provisions linked to the Bank Secrecy Act also underpinned the union’s backing. The letter said the revised text clarifies how digital assets are treated under rules governing “monetary instruments”, making existing reporting and enforcement obligations easier to apply to crypto activity.
Other sections require US agencies to share information and co-ordinate responses to illicit finance risks, while also aiming to strengthen international co‐operation on AML enforcement and sanctions involving digital assets.
Title IX of the bill would create a grant programme to support digital asset enforcement by state and local authorities. It would also establish a national security and law enforcement training programme, set up a digital asset cyber innovation centre and introduce measures aimed at protecting older consumers from scams.
Developers’ liability and unlicensed transmission
Responding to earlier worries about over-broad protections for software developers, the FOP said the current draft does not prevent authorities from investigating crimes, prosecuting offenders or enforcing existing criminal statutes.
Its letter explicitly referenced 18 U.S.C. § 1960, the federal law that covers certain forms of unlicensed money-transmitting activity, as an example of where enforcement powers remain intact.
The union also cited language that preserves liability for individuals who knowingly transfer funds linked to criminal conduct or who promote unlawful activity. In its view, that distinction offers “responsible developers” legal certainty without insulating those who deliberately facilitate illegal transactions.
Tight timetable and election-year politics
The endorsement comes as the CLARITY Act faces a narrowing window in Congress. As reported earlier on 24 July, Senate Majority Leader John Thune does not expect the Senate to pass the digital asset market structure package before lawmakers leave Washington for the August recess.
That stance removes a deadline crypto industry advocates had viewed as a key marker for completing the legislation in 2026. Following Thune’s comments, prediction market platform Polymarket saw traders cut the implied probability of the bill becoming law this year to 33%.
Attention has now turned to the post‐November “lame duck” session, when Congress is expected to focus on government funding, defence measures and a backlog of other legislation – all of which will compete with CLARITY for limited floor time.
Ron Hammond, head of policy and advocacy at market maker Wintermute, said the Act still enjoys sufficient bipartisan support to clear the Senate, but has become entangled in election-year tensions. He attributed the immediate blockage to political messaging rather than a lack of votes.
With Democrats preparing to campaign against President Donald Trump and alleged corruption, Hammond expects some senators to shy away from endorsing major cryptocurrency legislation before voters go to the polls. His analysis suggests the FOP’s backing may remove one obstacle from the law-enforcement community without overcoming the wider political barriers.
In its letter, the FOP described the latest draft as a “meaningful effort” to provide stronger investigative tools, clearer compliance pathways and better inter-agency co‐ordination. The union said its initial objections had been “satisfactorily addressed” and offered to continue working with lawmakers to secure passage of the amended bill.
