The National Fraternal Order of Police (FOP) has officially endorsed the revised CLARITY Act, reversing its earlier objections tied to the bill's Blockchain Regulatory Certainty Act (BRCA) provisions. The CLARITY Act is a centerpiece of congressional efforts to establish a federal market structure framework for digital assets, aiming to clarify the division of regulatory authority between the SEC and CFTC.

According to journalist Eleanor Terrett (X post), the FOP stated that updated language addresses its concerns while preserving law enforcement authority to investigate digital asset crimes. However, Terrett noted that the BRCA text itself remained unchanged in Wednesday's updated bill, leaving the specific referenced revisions unclear.

FOP Says Concerns Were Addressed

In a letter addressed to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, FOP National President Patrick Yoes confirmed the organization's support for the revised legislation.

Yoes said the updated Section 10604 clarified that non-controlling software developers and decentralized technologies would not impede criminal investigations. He added that the bill preserves liability for anyone knowingly transferring funds tied to criminal activity.

The organization concluded that investigators would retain existing authority under long-standing criminal statutes, including 18 U.S.C. 1960, which criminalizes operating unlicensed money transmitting businesses and has been a key enforcement tool against illicit crypto activity. Accordingly, the FOP determined that responsible innovation could continue without weakening enforcement powers.

Bill Expands Enforcement Tools

The FOP also highlighted several enforcement provisions in the revised bill. According to Yoes, the legislation strengthens anti-money laundering (AML) and sanctions compliance requirements across the digital asset sector.

Additionally, the bill shields digital asset companies and stablecoin issuers from liability when they voluntarily delay suspicious transactions or respond to law enforcement requests. Yoes said such temporary delays could help investigators recover stolen assets before funds move across jurisdictions.

The legislation also updates Bank Secrecy Act authorities covering digital assets and expands information sharing, international cooperation, and coordination on illicit finance investigations.

Title IX and Blockchain Association Support

The FOP pointed to Title IX, which creates grants supporting state and local digital asset investigations. The section also establishes training programs, a digital asset cyber innovation center, and consumer protection measures targeting fraud.

The Blockchain Association welcomed the FOP's endorsement. The trade group said the revised CLARITY Act strengthens illicit finance provisions, expands regulatory oversight, increases cooperation with investigators, and improves law enforcement visibility into digital asset markets.

According to the Blockchain Association, the legislation also strengthens consumer protections while preserving the investigative tools needed to pursue criminal activity involving digital assets.