National Fraternal Order of Police Endorses Revised CLARITY Act, Urging Senate to Pass Crypto Bill

3 hour ago 3 sources positive

Key takeaways:

  • FOP endorsement signals bipartisan momentum for crypto regulation, reducing systemic risk for institutional investors.
  • Stablecoin issuer liability shields likely boost demand for regulated assets like USDC, challenging opaque alternatives.
  • Senate’s CLARITY Act advancement could serve as a structural bullish catalyst, warranting close legislative monitoring.

The National Fraternal Order of Police (FOP) has officially endorsed the latest version of the CLARITY Act, reversing its earlier opposition tied to the Blockchain Regulatory Certainty Act (BRCA) provisions. In a letter to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, FOP President Patrick Yoes confirmed the revised language preserves law enforcement authority to investigate digital asset crimes while fostering responsible innovation.

Yoes highlighted that updated Section 10604 clarifies non-controlling software developers and decentralized technologies will not limit criminal probes. The bill retains liability for anyone knowingly transferring funds linked to criminal activity, ensuring existing statutes like 18 U.S.C. 1960 remain intact.

The legislation broadens anti-money laundering and sanctions compliance requirements across the digital asset sector. It also shields companies and stablecoin issuers from liability when voluntarily delaying suspicious transactions at law enforcement’s request – a measure Yoes said could help recover stolen assets before they cross jurisdictions. Other enhancements include updated Bank Secrecy Act authorities, expanded information sharing, and stronger international cooperation on illicit finance investigations.

Title IX of the bill establishes grants for state and local digital asset investigations, training programs, a cyber innovation center, and consumer protection measures against fraud. The Blockchain Association welcomed the endorsement, stating the revised CLARITY Act strengthens consumer protections while improving crypto crime enforcement and market transparency.

Coinbase’s Chief Legal Officer Paul Grewal reacted to the endorsement by calling on the Senate to act. “Law enforcement wants CLARITY passed — does the Senate want the same?” he wrote, pressing lawmakers to follow the FOP’s lead. The bill awaits floor consideration as the 2026 session continues.

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