In a surprising turn, the National Fraternal Order of Police, representing over 382,000 officers, has changed its position to back the updated CLARITY Act after lawmakers included language addressing the union’s concerns about cryptocurrency investigations. The shift comes amid ongoing debates and delays in Senate proceedings on crypto regulation.
Union’s Endorsement After Legislative Revisions
On July 24, FOP National President Patrick Yoes sent a letter to Senate Banking Committee leaders Tim Scott and Elizabeth Warren, officially endorsing H.R. 3633, known as the Digital Asset Market Clarity Act. The letter highlights revisions to Section 10604, which amends the Blockchain Regulatory Certainty Act (BRCA). According to Yoes, these adjustments ensure that law enforcement and prosecutors retain authority to tackle illegal activities involving digital assets without restrictions.
Despite the union’s declaration, investigative reporter Eleanor Terrett pointed out that the latest bill release didn’t show significant changes to the BRCA provisions. This raises questions about whether the FOP reviewed earlier versions, received private reassurances from lawmakers, or interpreted existing clauses differently.
Maintaining Enforcement Powers Over Crypto Crimes
The union emphasized that the revised provisions safeguard critical tools for state, federal, and local agencies battling financial crimes conducted through cryptocurrencies. Fraud, organized crime, and illicit finance exploiting digital asset networks remain a priority concern requiring clear legal frameworks.
For instance, the legislation introduces measures to protect against fraud linked to digital asset kiosks and extends anti-money laundering and sanctions compliance requirements across relevant sectors. Such provisions are intended to empower investigators without hampering legitimate law enforcement operations.
This development follows growing momentum for full crypto regulation in the US. It aligns with efforts by various stakeholders to clarify rules surrounding digital assets, balancing innovation and enforcement. Earlier coverage of the National Fraternal Order of Police’s evolving position can be found in our report on growing support for the CLARITY Act.
Legislative Outlook Amid Political Challenges
Despite this endorsement, the path to passage remains uncertain. Senate delays and political tensions in an election year have pushed Polymarket’s odds of the CLARITY Act passing in 2026 down to around 33%. Whether the revised language will hold up through ongoing negotiations is still to be seen.
The newfound backing from the police union marks a key moment in these discussions, highlighting the complex balance lawmakers must strike between enabling innovation in digital finance and equipping law enforcement with effective tools to fight crime.
