Why is the Department of Justice supporting the CLARITY Act?

The Department of Justice said the CLARITY Act would not weaken criminal investigations involving digital assets. The agency stated that concerns raised by law enforcement groups were based on factual inaccuracies and mischaracterised the bill's impact.

What concerns did law enforcement organisations raise about the CLARITY Act?

The National District Attorneys Association, National Association of Assistant US Attorneys, International Association of Chiefs of Police and National Sheriffs' Association argued that parts of the CLARITY Act could create regulatory blind spots. The groups specifically highlighted Section 604 and provisions related to the Blockchain Regulatory Certainty Act.

How would the CLARITY Act affect digital asset investigations according to the DOJ?

The Department of Justice said the CLARITY Act would not limit its ability to investigate or prosecute crimes involving digital assets. The agency said enforcement efforts related to terrorism financing, drug trafficking and human smuggling would remain unchanged.

What is the next step for the CLARITY Act?

Senate negotiators are expected to release updated CLARITY Act text on July 4 following months of discussions with lawmakers, industry representatives and banking groups. The updated draft is expected to undergo a final review period before potential Senate floor consideration later in July.

How is the CLARITY Act connected to broader US digital asset policy?

The CLARITY Act is part of a wider effort to establish a regulatory framework for digital assets in the United States. The legislation is being debated alongside other crypto-related policies, including stablecoin regulation under the GENIUS Act and proposals related to central bank digital currencies.

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DOJ disputes CLARITY Act enforcement concerns

Written by Isaac FrancisPublished Jun 25, 2026, 1:36 AM

The US Department of Justice rejected claims that the CLARITY Act would weaken criminal investigations into digital asset activity.
Four major law enforcement organisations argued that parts of the legislation could create regulatory blind spots for certain market participants.
Senate negotiators are expected to release updated CLARITY Act text on July 4 ahead of a final review period and possible floor debate.

The US Department of Justice said concerns raised by several law enforcement organisations about the Digital Asset Market Clarity Act were based on factual inaccuracies and did not reflect the bill's effect on criminal investigations.

The dispute emerged after the National District Attorneys Association, National Association of Assistant US Attorneys, International Association of Chiefs of Police and National Sheriffs' Association urged the White House to reconsider provisions they said could create regulatory gaps.

“The letter contains factual inaccuracies and mischaracterises Administration policy,” said a Department of Justice spokesperson in response to the organisations' concerns.

The groups specifically cited Section 604 of the legislation and argued that certain exemptions could reduce oversight of some digital asset market participants, while also raising concerns about provisions linked to the Blockchain Regulatory Certainty Act.

The Department of Justice said the proposed legislation would not affect its ability to investigate or prosecute crimes involving digital assets, including terrorism financing, drug trafficking and human smuggling, and there was no immediate market reaction following the exchange.

Senate negotiators, led in part by Cynthia Lummis, are expected to publish updated CLARITY Act language on July 4 after months of negotiations involving lawmakers, industry participants and banking representatives.

The debate comes as policymakers continue broader discussions around US digital asset regulation, including legislation related to central bank digital currencies and the regulatory framework established under the GENIUS Act.