The Digital Asset Market Clarity Act (CLARITY Act) has gained support from a second major law enforcement organization as lawmakers continue efforts to advance the legislation in the U.S. Senate before the August recess.
The Federal Law Enforcement Officers Association (FLEOA) announced its support for the bill on July 10, describing it as an important step toward balancing innovation in digital assets with public safety. FLEOA represents more than 34,000 active and retired federal law enforcement officers from over 65 agencies.
While backing the legislation, the organization is also calling for several changes. FLEOA wants stronger accountability measures for decentralized finance (DeFi) platforms and clearer rules to prevent companies from avoiding regulation by claiming to be decentralized while still maintaining control over services.
The group also urged lawmakers to replace the bill’s current “specific intent” standard with a broader knowledge-based standard and to clearly state that the legislation will not limit existing federal investigative powers. According to FLEOA, law enforcement agencies must continue to have full authority to investigate financial crimes, money laundering, sanctions violations, and terrorism financing.
The endorsement follows support from the National Organization of Black Law Enforcement Executives (NOBLE) earlier this month, making FLEOA the second major law enforcement group to publicly back the bill.
However, the proposal remains controversial. Critics continue to focus on Section 604, which would provide certain protections for software developers and non-custodial service providers that do not control customer funds. Some law enforcement organizations argue that broad protections could make it more difficult to investigate cryptocurrency-related crimes.
Supporters of the bill, including industry groups, argue that the legislation provides strong consumer protections while creating clearer regulatory guidelines for the digital asset industry.
The debate comes as the Senate faces a limited timeline. Lawmakers have until early August before beginning their scheduled summer recess, leaving only a short window to finalize and vote on the legislation.
President Donald Trump recently urged the Senate to pass the CLARITY Act, while Senator Cynthia Lummis warned that failure to act could leave the United States behind other countries that are already developing comprehensive digital asset regulations.
Before a final vote can take place, Senate committees still need to reconcile differences in the bill’s language and secure enough bipartisan support to meet the Senate’s voting requirements.
With FLEOA’s endorsement, supporters of the CLARITY Act have gained another influential voice, but discussions over DeFi regulation, developer protections, and law enforcement authority remain key issues as negotiations continue.
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