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The Federal Law Enforcement Officers Association has endorsed the CLARITY Act, giving the crypto market structure bill its second public backing from a national law enforcement organization in nine days.
FLEOA said the Senate proposal balances digital asset regulation with public safety. Its support comes with requests to tighten protections covering decentralized finance before the bill reaches the floor.
FLEOA Seeks DeFi and Intent-Standard Changes
FLEOA submitted its endorsement to the Senate Banking Committee on July 10. The association said the bill preserves criminal, anti-money laundering, counterterrorism financing, sanctions and investigative powers while creating federal rules for digital asset markets.
The group asked senators to make responsibility within decentralized systems easier to establish. It wants lawmakers to stop businesses from avoiding oversight by presenting controlled operations as decentralized.
FLEOA also asked senators to replace the bill’s specific-intent standard with an existing knowledge standard.
Group Wants Court-Order Protections Preserved
FLEOA requested language confirming that the legislation does not restrict federal investigations or compliance with lawful court orders.
Its position supports the framework while seeking changes to DeFi responsibility, intent standards and investigative protections.
The endorsement gives supporters another law enforcement voice as senators work through concerns about how the bill treats decentralized protocols and non-custodial blockchain services.
NOBLE Also Backed the Bill in Early July
The National Organization of Black Law Enforcement Executives became the first large policing organization to endorse the bill in early July. NOBLE said the proposal would add tools for pursuing digital asset crime while retaining authorities used in fraud, money laundering and sanctions cases.
Other groups remain concerned about Section 604, which protects some developers and providers of non-custodial blockchain services from liability and money-transmitter rules.
Prosecutors, police chiefs and sheriffs have warned that broad exemptions could make it harder to identify accountable operators and recover stolen funds. The two endorsements show that law enforcement groups are not uniformly opposed to the bill.
Senate Faces August 10 Recess Pressure
The Senate Banking Committee advanced its version of the CLARITY Act by a 15-9 vote on May 14.
The bill would divide digital asset oversight between the Securities and Exchange Commission and Commodity Futures Trading Commission while setting registration, disclosure and customer-protection rules.
Senators must still reconcile the Banking Committee text with provisions approved by the Agriculture Committee. No floor vote has been scheduled.
The Senate begins its August state work period on August 10. Supporters are pressing leaders to resolve the DeFi language and bring the combined bill forward before lawmakers leave Washington.
