160 former national security, intelligence, and law enforcement professionals signed a June 2 letter urging Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer to support the CLARITY Act's crypto market structure rules. The signatories frame digital asset oversight as a national security issue, arguing that without U.S. rules and enforcement reach, markets could migrate to opaque offshore venues beyond investigators' reach. The Digital Asset Market Clarity Act of 2025 passed the House in July 2025 in a 294-134 vote and advanced through the Senate Banking Committee on May 14 in a bipartisan 15-9 vote, but still needs full Senate approval, possible House-Senate reconciliation, and President Donald Trump's signature before becoming law.
CLARITY Act Expands Bank Secrecy Act and Creates Treasury-Led Information Sharing
The June 2 letter to Senate leaders states that the CLARITY Act would expand Bank Secrecy Act and sanctions obligations for digital commodity brokers, dealers, and exchanges. The bill would create Treasury-led information sharing with the Department of Justice (DOJ), Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and private companies. The Blockchain Association wrote on X: "Today, we're sending a letter to Senate Majority Leader Thune and Senate Democratic Leader Schumer signed by 160 former national security, intelligence, and law enforcement professionals in support of the CLARITY Act."
Bill Adds Anti-Fraud Safeguards and Extends Compliance Duties to Digital Asset Kiosks
The letter points to enforcement changes beyond traditional exchanges. The bill would add anti-fraud safeguards, monitoring rules, reporting duties, transaction limits, and law enforcement contacts for digital asset kiosks. It would extend compliance duties to certain centralized finance trading protocols and clarify sanctions expectations for distributed ledger messaging systems. For prosecutors and investigators, the bill would allow temporary holds on suspicious digital asset transfers, require law enforcement notification, and reinforce court-order compliance. It would define digital assets as monetary instruments and expand administrative seizure authorities in significant cases. The Blockchain Association stated: "The responsible digital asset industry stands with law enforcement. We support strong compliance, strong consumer protections, and strong tools to combat illicit finance. That's why the Senate should advance the CLARITY Act."
President Trump Calls for Lasting Digital Asset Framework as Senator Lummis Warns of Delay
President Donald Trump has called for a lasting digital asset framework that "cannot be undone." U.S. Senator Cynthia Lummis warned that delay could push major crypto legislation to 2030. A16z Crypto has argued that the United States is falling behind Europe's Markets in Crypto-Assets Regulation (MiCA) and the U.K.'s rulemaking push. Stand With Crypto, a crypto advocacy group backed by digital asset supporters, has urged the full Senate to pass the bill.
FAQ
What did 160 former national security professionals do on June 2?
160 former national security, intelligence, and law enforcement professionals signed a June 2 letter to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer supporting the CLARITY Act's crypto market structure rules.
What does the CLARITY Act require for digital asset kiosks?
The CLARITY Act would add anti-fraud safeguards, monitoring rules, reporting duties, transaction limits, and law enforcement contacts for digital asset kiosks.
What steps does the CLARITY Act need to become law?
The CLARITY Act passed the House in July 2025 in a 294-134 vote and advanced through the Senate Banking Committee on May 14 in a 15-9 vote. It still needs full Senate approval, possible House-Senate reconciliation, and President Donald Trump's signature before becoming law.
