The National Fraternal Order of Police and National Cryptocurrency Association have both endorsed the revised CLARITY Act, marking significant support from law enforcement and industry stakeholders. The FOP, representing more than 382,000 members, endorsed the legislation in a July 24 letter to Senate Banking Committee Chairman Tim Scott and ranking member Elizabeth Warren, citing that revised Section 10604 addresses their concerns about cryptocurrency investigations. Meanwhile, the NCA published testimony to a House Financial Services subcommittee, arguing the legislation strengthens consumer protections while reducing regulatory uncertainty for the digital asset industry. The endorsements come as more than 200 crypto groups have joined the push, including the Blockchain Association, Crypto Council for Innovation, and Digital Chamber, with all sending letters urging fast legislative action.
The revised CLARITY Act addresses distinct concerns from both stakeholder groups. The FOP highlighted provisions covering anti-money laundering and sanctions compliance, digital asset kiosks, seizure and tracing authorities, temporary transaction holds requested by law enforcement, and new grant and training programs aimed at strengthening digital asset investigations. According to the FOP letter, the legislation establishes a digital asset cyber innovation center and clarifies that protections for certain software developers do not shield those who intentionally facilitate criminal activity. The NCA emphasized that the legislation requires clearer disclosures from crypto platforms, introduces fraud warnings for crypto kiosks, preserves self-custody rights, and maintains existing consumer protection authority for the Federal Trade Commission and Consumer Financial Protection Bureau. Senator Cynthia Lummis released new text this week that protects customers better, ensuring crypto remains yours if an exchange fails, a stark contrast to the Celsius and Voyager collapses in 2022 where customers lost access for years and recovered only partial funds.
The NCA's endorsement is backed by comprehensive market research showing strong public support for digital asset legislation. The organization cited its own research claiming more than 67 million Americans own cryptocurrency, with 73% of respondents supporting stronger consumer protections and 77% favoring comprehensive legislation for digital assets. This research provides crucial political backing as the legislation moves forward, demonstrating significant public interest in clearer regulatory frameworks for digital assets.
The endorsements come as the CLARITY Act faces mounting political obstacles despite growing stakeholder support. Senate Majority Leader John Thune confirmed the bill is unlikely to pass before the August recess, stating he doesn't think we'll be able to get them done in the remaining time. The legislation needs 60 Senate votes, but Republicans hold only 53 seats, requiring at least seven Democrats to vote yes - a threshold none currently support. Galaxy research firm has cut passage odds to just 30%, down from 75% in May, while Polymarket betting odds fell to about 37% on Friday. The political challenge stems from President Trump's $1.4 billion crypto earnings from his $TRUMP meme coin and World Liberty Financial, with Democrats citing conflicts of interest. Party leader Chuck Schumer has told Democrats to focus on Trump before elections, raising the political cost of supporting the bill.
