A coalition of more than 160 former national security, intelligence, and law enforcement officials has urged the U.S. Senate to move forward with the CLARITY Act, arguing that the legislation would strengthen the country’s ability to combat illicit financial activity involving digital assets.
The appeal was outlined in a letter sent to Senate Majority Leader John Thune and Democratic Leader Chuck Schumer. The effort was coordinated by Blockchain Association, which described digital asset market structure reform as a critical issue for both law enforcement and national security.
Former Officials Advocate for Stronger Crypto Oversight
According to the letter, the rapid expansion of cryptocurrency markets worldwide makes it increasingly important for the United States to establish a clear regulatory framework for the industry. The signatories warned that without effective oversight, more crypto activity could migrate to offshore jurisdictions and less transparent markets, making it more difficult for U.S. authorities to monitor transactions and investigate criminal activity.
The group stressed that digital asset activity should operate under U.S. laws and regulatory supervision, arguing that such an approach would enhance national security, improve law enforcement capabilities, and provide investigators with stronger tools to combat financial crimes. They believe the framework would make it more difficult for criminal organizations to launder funds, evade sanctions, and carry out fraud.
Addressing Rising Illicit Crypto Activity
The push for the legislation comes amid growing concerns over illegal cryptocurrency transactions. Data from the Bank Policy Institute indicated that illicit crypto flows increased by 162 percent year over year in 2024.
Supporters of the CLARITY Act maintain that the bill is not intended to reduce regulation. Instead, they say it would strengthen compliance standards, improve enforcement mechanisms, and increase accountability across digital asset markets.
The proposed legislation would expand the scope of the Bank Secrecy Act to cover digital commodity brokers, dealers, and exchanges. It would also introduce anti money laundering requirements, reporting obligations, and transaction monitoring standards.
In addition, the bill proposes a Treasury led information sharing pilot program involving agencies such as the Department of Justice, FBI, and DEA. It would also establish a permanent interagency working group focused on combating illicit finance.
Industry Engagement in Washington
The Blockchain Association said its members and other industry stakeholders will travel to Washington, D.C., for meetings with representatives across 18 Senate offices. The organization is also preparing a virtual town hall later this week to discuss the role of the CLARITY Act in supporting law enforcement and national security objectives.
Expected participants include Cynthia Lummis, Tom Emmer, and Patrick Witt.
The letter concludes by urging senators to approve the CLARITY Act. While the legislation recently cleared the Senate Banking Committee, it continues to face opposition from some lawmakers and members of the banking industry.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
