America’s largest police union and three crypto industry organizations have publicly backed the Digital Asset Market Clarity Act, known as the CLARITY Act, as the bill moves toward Senate consideration amid continuing political and industry objections. The legislation represents one of the most consequential attempts in Congress to establish a comprehensive federal framework for digital assets, addressing a years-long jurisdictional gray area in which the SEC and CFTC have advanced overlapping claims over crypto markets.

The National Fraternal Order of Police (FOP), the largest police union in the United States, endorsed the measure in a July 24 letter. FOP National President Patrick Yoes said the union’s position changed after revisions to Section 10604 of the Blockchain Regulatory Certainty Act (BRCA). According to the source article, the latest version gives law enforcement agencies authority over crime involving digital assets.

🚨🚨 National Fraternal Order of Police Endorse Clarity Act “…. the FOP's initial concerns have been satisfactorily addressed and we look forward to working with you to get the amended bill passed.” pic.twitter.com/GzrhQXnlDv — Senator Cynthia Lummis (@SenLummis) July 24, 2026

Crypto organizations urge Senate consideration

On the same day, the Blockchain Association, Crypto Council and Digital Chamber jointly urged the Senate to consider the CLARITY Act. The industry groups have repeatedly called for legislative clarity following a period of enforcement-led regulation that left many firms operating under uncertain compliance obligations. In their letter, the groups wrote: “This is a crucial opportunity for the Senate to improve upon the status quo by establishing durable rules for digital assets that protect consumers, safeguard markets, and ensure that innovation can thrive in the United States.”

Patrick Witt, Executive Director for the President’s Council of Advisors for Digital Assets, also expressed confidence that the bill could pass. “I’m optimistic that we can get the necessary votes,” Witt said.

Opposition, bankruptcy protections and market-implied odds

The bill still faces several obstacles. Democrats continue to oppose the CLARITY Act, citing ethical concerns tied to President Trump’s crypto activities. Senator Thom Tillis said the President is expected to meet with the Senate soon to seek common ground on those concerns, though no specific date was provided.

Senator Cynthia Lummis recently said the Act includes brokerage-grade bankruptcy protections. Under those provisions, investor funds would be protected from a service provider’s bankruptcy, and cryptocurrencies would be guaranteed as the property of end-users only. Such protections address a gap that drew public attention during the 2022 collapse of several major crypto platforms, where customers faced extended legal proceedings to recover assets.

Despite the new endorsements and bankruptcy language, the odds of the CLARITY Act becoming law in 2026 remained low at 35% on Polymarket and 40.6% on Kalshi, respectively, according to the source article.

Source: Grayscale Investments

The article attributed those low odds to repeated delays, as well as opposition from banks and Democrats to certain parts of the bill. The next developments cited were the President’s expected meeting with the Senate and a subsequent floor vote scheduled for July 27.