A U.S. police union representing more than 382,000 members has reversed its position and endorsed the latest version of the CLARITY Act after reviewing language it says addresses concerns about cryptocurrency investigations.

The National Fraternal Order of Police now backs the bill, saying revised provisions preserve the ability of law enforcement agencies and prosecutors to investigate crimes involving digital assets. The shift comes as Senate delays and election-year disputes have pushed Polymarket’s implied odds of the legislation passing in 2026 down to 33%.

The CLARITY Act is one of the main digital asset market structure bills before Congress, aimed at setting clearer federal rules for cryptocurrency markets while defining how regulators and law enforcement can apply existing authorities. For police groups, the debate has centered less on market oversight itself than on whether legal protections for developers and service providers could complicate investigations into illicit crypto activity.

According to former Fox Business reporter Eleanor Terrett, the National Fraternal Order of Police changed its stance after reviewing provisions tied to the Blockchain Regulatory Certainty Act. The union said the language protects police and prosecutors as they pursue illegal conduct involving cryptocurrencies.

🚨NEWS: The National Fraternal Order of Police, one of the key law enforcement groups involved in negotiations over the Blockchain Regulatory Certainty Act, is now backing the latest version of the Clarity Act, saying revised BRCA language addresses its previous concerns and… pic.twitter.com/a0LWPk9u0H — Eleanor Terrett (@EleanorTerrett) July 24, 2026

🚨NEWS: The National Fraternal Order of Police, one of the key law enforcement groups involved in negotiations over the Blockchain Regulatory Certainty Act, is now backing the latest version of the Clarity Act, saying revised BRCA language addresses its previous concerns and… pic.twitter.com/a0LWPk9u0H

In a July 24 letter to Senate Banking Committee Chairman Tim Scott and ranking member Elizabeth Warren, FOP National President Patrick Yoes endorsed the latest version of H.R. 3633, formally known as the Digital Asset Market Clarity Act.

Yoes wrote that revised Section 10604, which amends the BRCA, does not limit law enforcement agencies or prosecutors from acting against unlawful activity involving cryptocurrencies. According to the letter, that clarification directly responds to concerns the union had raised during earlier negotiations over the bill.

Terrett reported, however, that the BRCA provisions were unchanged in the latest version of the bill released Wednesday. She said it was unclear which revisions the FOP was referencing when it announced its support.

That apparent discrepancy leaves unresolved whether the union was relying on language added at an earlier stage, separate assurances from lawmakers, or a different interpretation of an existing provision. Neither the FOP letter nor Terrett’s report identified a newly amended passage beyond Section 10604.

FOP says revised language preserves crypto enforcement powers

In explaining its reversal, the FOP cited several parts of the legislation that it says would help federal, state and local agencies investigate financial crimes involving digital assets. The union said investigators require clear authority and practical tools as they respond to fraud, organized crime and illicit finance conducted through crypto networks.

Among the provisions cited by the union, the legislation would establish safeguards aimed at fraud connected to digital asset kiosks. The FOP said the measure also applies anti-money laundering and sanctions compliance obligations across parts of the cryptocurrency industry.

The letter also pointed to rules intended to help investigators act before suspected criminal proceeds move beyond their reach. Those provisions would protect digital asset companies and stablecoin issuers from liability when they voluntarily delay suspicious transactions or respond to a law enforcement request.

Because cryptocurrencies can move quickly across jurisdictions, the FOP argued that temporary transaction holds could give investigators time to prevent losses, recover stolen assets and disrupt unlawful activity. The union described those protections as an important tool in cases where funds might otherwise disappear before officers can intervene.

Bank Secrecy Act provisions were another factor in the union’s support. According to the letter, the revised bill updates how digital assets are treated under rules governing monetary instruments, allowing existing reporting and enforcement requirements to apply more clearly to cryptocurrency activity.

Other sections would require government agencies to share information and coordinate responses to illicit finance risks. The FOP said the bill would also strengthen international cooperation on anti-money laundering enforcement and sanctions related to digital assets.

Under Title IX, the legislation would create a grant program for state and local digital asset enforcement work. The FOP said it would also establish a national security and law enforcement training program, create a digital asset cyber innovation center and introduce measures designed to protect older consumers from deception.

The union also addressed protections for software developers, saying the bill would not stop authorities from investigating crimes, prosecuting offenders or applying existing criminal laws. Its letter specifically cited 18 U.S.C. § 1960, a federal statute covering certain unlicensed money-transmitting activity.

The FOP further pointed to language preserving liability for people who knowingly transfer funds connected to criminal offenses or promote unlawful activity. According to the union, that distinction gives responsible developers legal certainty while not shielding individuals who intentionally support illegal transactions.

Senate delay moves attention beyond August recess

The FOP endorsement comes as the CLARITY Act faces a tighter congressional timetable. As crypto.news reported earlier on July 24, Senate Majority Leader John Thune does not expect the Senate to approve the market structure legislation before lawmakers leave Washington for the August recess.

Thune’s position removes a deadline that cryptocurrency industry supporters had treated as significant for completing the bill in 2026. After that development, Polymarket traders reduced the probability that the legislation would become law this year to 33%.

Attention has shifted to the period after the November midterm elections. During that session, lawmakers will return to government funding measures, defense legislation and other unfinished bills that will compete for limited Senate floor time.

According to Wintermute head of policy and advocacy Ron Hammond, the CLARITY Act still has sufficient bipartisan support to pass but has become caught in election-year disputes. Hammond attributed the immediate obstacle to political messaging rather than a lack of votes in the Senate.

With Democrats preparing to campaign against President Donald Trump and alleged corruption, Hammond expects some lawmakers to avoid supporting a major cryptocurrency bill before the election. His assessment indicates that the FOP endorsement may settle one law enforcement dispute while leaving broader political barriers to a Senate vote in place.

In its letter, the FOP described the latest provisions as a meaningful attempt to provide stronger investigative tools, clearer compliance paths and better coordination among agencies. The union said its initial concerns had been satisfactorily addressed and offered to work with lawmakers to secure passage of the amended bill.