Over 160 former U.S. national security and law enforcement officials have urged Senate leaders to advance the CLARITY Act. In a letter coordinated by the Blockchain Association, they argue the legislation is a national security priority that would strengthen oversight of cryptocurrency markets and combat illicit finance by keeping activity under U.S. law and visibility.
More than 160 former national security and law enforcement officials are pushing the U.S. Senate to advance the CLARITY Act. They contend the bill would strengthen efforts to combat illicit finance within the cryptocurrency industry.
The letter was addressed to Senate Majority Leader John Thune and Democratic Leader Chuck Schumer and was coordinated by the Blockchain Association. The industry group called digital asset market structure a law enforcement and national security priority.
The signatories argue that without a U.S. regulatory framework, more activity could move offshore into opaque markets. This would create gaps that can be exploited for illicit finance and reduce oversight.
“It is critical for the United States that this activity occurs under American rules, with American oversight, and subject to American Law,” the letter states. The former officials claim this would improve national security and give investigators more tools to fight financial crime.
Data from the Bank Policy Institute shows illicit crypto flows surged 162% year-on-year last year. The group stated the act is not deregulatory but aims to improve enforcement and compliance accountability.
The legislation would extend the Bank Secrecy Act and impose compliance requirements on digital commodity brokers and exchanges. It also includes anti-money laundering obligations and a Treasury-led information-sharing pilot program.
The Blockchain Association shared that its members will hold meetings across 18 Senate offices in Washington, D.C. A virtual town hall is also planned this week with expected attendees including Senator Cynthia Lummis and House Majority Whip Tom Emmer.
The letter concludes with a call for the Senate to pass the legislation. The bill has been approved by the Senate Banking Committee but faces strong resistance from some lawmakers and bankers.
