The Digital Asset Market Clarity Act has secured support from a second law enforcement organization before a Senate push.
Summary
- FLEOA backed the CLARITY Act while requesting tighter accountability rules for decentralized finance platforms nationwide.
- The endorsement follows NOBLE’s support, giving the bill two major law enforcement backers before recess.
- Senators face an August deadline as disputes over developer protections and investigative powers remain unresolved.
The Federal Law Enforcement Officers Association said it supports H.R. 3633 but wants lawmakers to revise several provisions before passage.
In a July 10 statement, FLEOA said the bill “represents meaningful progress” toward balancing digital asset development with public safety. The group represents more than 34,000 active and retired federal officers across over 65 agencies.
FLEOA backs the bill but seeks DeFi changes
FLEOA asked the Senate Banking Committee to make accountability clearer in decentralized finance, or DeFi. It also wants language that prevents companies from avoiding regulation by presenting controlled services as decentralized. The association urged senators to replace the bill’s “specific intent” test with an existing knowledge standard.
The group also asked Congress to state clearly that the legislation does not reduce current federal investigative powers or block lawful court processes. FLEOA said agencies must retain authority covering criminal cases, anti-money laundering rules, sanctions and counterterrorism financing. National President Mathew Silverman said officers need tools to investigate complex financial crimes.
Endorsement adds to a divided law enforcement debate
The support follows the National Organization of Black Law Enforcement Executives’ endorsement earlier in July. As previously reported, NOBLE became the first major law enforcement group to publicly back the bill.
Ji Kim, CEO of the Crypto Council for Innovation, said FLEOA’s position showed the measure was strong on consumer protection and law enforcement.
Other organizations have raised concerns about Section 604. The provision would protect some software developers and non-custodial service providers from being treated as money transmitters when they do not control customer funds. As reported by crypto.news, four law enforcement groups warned that broad protections could make some crypto crime investigations harder.
In addition, the Department of Justice later challenged parts of those claims.The agency viewed some warnings about lost enforcement powers as inaccurate. The Major County Sheriffs of America also moved from opposition to a neutral position after further talks over Section 604.
Senate faces a narrowing August window
The Senate’s published 2026 schedule places its August state work period from Aug. 10 through Sept. 11. That leaves Aug. 7 as the final scheduled session day before the break. As of July 14, the Senate’s public floor schedule did not list a vote on the CLARITY Act.
President Donald Trump urged the Senate to pass the measure on July 13, linking the appeal to the late Senator Lindsey Graham.The request came as negotiators worked to complete a merged draft before recess.
Senator Cynthia Lummis said on July 8, “This is likely our last chance to get real legislation for digital assets on the books before 2030.” She warned that other countries could set the rules if Congress fails to act.
Senate staff still need to align Banking and Agriculture Committee language before a final floor vote. The bill also needs bipartisan support to clear the Senate’s 60-vote threshold.
FLEOA’s endorsement gives supporters another law enforcement voice during negotiations. Its requested revisions show that questions over DeFi accountability, developer protections and investigative authority remain active before the scheduled summer break.
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