U.S. Law Enforcement Coalition Opposes Section 604 of CLARITY Act on June 23

A coalition representing more than 70,000 U.S. law enforcement professionals sent a letter on June 23 calling for revisions to the Digital Asset Market Clarity Act (CLARITY Act), specifically Section 604, which they argue could create broad exemptions weakening digital asset oversight and investigative authorities. The letter, signed by leaders of the National District Attorneys Association, the National Association of Assistant United States Attorneys, the International Association of Chiefs of Police, and the National Sheriffs' Association, stated that exemptions could shield market participants from registration, know-your-customer, and anti-money laundering requirements.

The coalition highlighted concerns that mixers, tumblers, and certain decentralized finance businesses could be excluded from regulatory obligations despite their potential role in facilitating illicit fund movement. The organizations emphasized that digital assets increasingly appear in investigations involving narcotics trafficking, fraud, child exploitation, ransomware, and sanctions evasion, and that existing investigative tools are essential to combat these crimes.