What is the CLARITY Act?

The Digital Asset Market Clarity Act, or CLARITY Act, is proposed US legislation designed to create a regulatory framework for digital assets and cryptocurrency markets. Supporters say it would provide clearer rules for the industry while strengthening oversight and compliance requirements.

Why are 160 former national security officials supporting the CLARITY Act?

A coalition of former national security, intelligence and law enforcement professionals argues that clear crypto regulations are important for national security. They believe bringing digital asset activity under US oversight helps prevent illicit finance and reduces the risk of activity moving offshore.

What did the officials tell the US Senate?

The group sent a letter to Senate leaders John Thune and Chuck Schumer urging lawmakers to advance the CLARITY Act. They argued that stronger regulatory clarity would improve law enforcement access and strengthen oversight of the digital asset sector.

How would the CLARITY Act affect crypto exchanges and brokers?

Supporters say the bill would expand anti-money laundering, sanctions compliance and reporting obligations for digital asset brokers, dealers and exchanges. This could increase compliance requirements while also providing a clearer regulatory framework.

Why is national security being linked to crypto regulation?

Backers of the bill argue that digital asset markets should remain subject to US laws, sanctions enforcement and investigative powers. They warn that regulatory uncertainty could push crypto activity to offshore jurisdictions with less transparency and weaker oversight.

What new enforcement powers could the CLARITY Act introduce?

According to supporters, the legislation would strengthen information sharing between agencies such as the Treasury Department, Department of Justice, FBI and DEA. It would also enhance reporting requirements and provide additional tools for investigating suspicious transactions.

Has the CLARITY Act already become law?

No. The bill passed the House of Representatives in July 2025 and later advanced through the Senate Banking Committee. It still requires approval by the full Senate before moving to the next stage of the legislative process.

How could the CLARITY Act affect crypto investors?

If enacted, the legislation could provide greater regulatory certainty for exchanges, brokers and digital asset projects operating in the United States. Clearer rules may improve investor confidence, although compliance costs for companies could also increase.

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National security veterans back CLARITY Act push

Written by Jon CuthbertPublished Jun. 4 2026Last Updated Jun. 4 2026

A coalition of 160 former national security, intelligence and law enforcement professionals has urged the US Senate to advance the Digital Asset Market Clarity Act, arguing that clear cryptocurrency regulation is essential to national security and law enforcement efforts.

In a letter sent to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer, the group said digital asset activity should remain subject to US oversight rather than being pushed offshore into less transparent jurisdictions.

“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,”

The Blockchain Association said.

Supporters argue the legislation would expand anti-money laundering, sanctions compliance and reporting requirements for digital asset brokers, dealers and exchanges while increasing cooperation between the Treasury Department, Department of Justice, FBI and other agencies.

The bill would also introduce additional monitoring, reporting and anti-fraud requirements for certain crypto-related businesses, including provisions designed to strengthen law enforcement access and asset recovery tools in cases involving suspicious transactions.

“The responsible digital asset industry stands with law enforcement. We support strong compliance, strong consumer protections, and strong tools to combat illicit finance,”

The Blockchain Association added.

The CLARITY Act passed the House of Representatives in July 2025 with bipartisan support and was later approved by the Senate Banking Committee, but it still requires a full Senate vote before it can proceed to the next stage of the legislative process.

The debate comes as lawmakers, industry groups and regulators continue to compete over the future of US crypto regulation, with supporters arguing that delays could leave the United States behind jurisdictions including the European Union and the United Kingdom in developing digital asset rules.