The U.S. Department of Justice has dismissed warnings from four major law enforcement organizations about the CLARITY Act, asserting that the critics' claims are factually incorrect and that the legislation would not undermine criminal investigations.
In a June 24 response, a DOJ spokesperson said a recent letter from the National District Attorneys Association, National Association of Assistant U.S. Attorneys, International Association of Chiefs of Police, and National Sheriffs’ Association “contains factual inaccuracies and mischaracterizes Administration policy.” The dispute comes as lawmakers finalize the digital asset market structure bill, with Senate negotiators preparing to release final text for review before floor consideration later in July.
Law Enforcement Groups Warn Section 604 Could Create Blind Spots
In a June 23 letter to the White House, the four organizations urged reconsideration of parts of the legislation, particularly Section 604. They argued that broad exemptions could create regulatory blind spots for sophisticated criminal actors, reduce oversight and accountability for some digital asset participants, and interfere with enforcement structures used by investigators and prosecutors. The groups stressed they were not opposed to software development or innovation, but objected to protections that could shield intermediary entities from regulatory scrutiny. They also questioned provisions linked to the Blockchain Regulatory Certainty Act.
The DOJ pushed back firmly. Its spokesperson stated the legislation would not limit federal prosecutors or investigators, and law enforcement access to relevant information would remain unchanged under the proposal. The DOJ further said the bill would not restrict its ability to investigate or prosecute criminal conduct involving digital assets, including drug trafficking, human smuggling, and terrorism financing.
Senate Review Advances as Lummis Confirms July 4 Text Release
As the law enforcement criticism draws attention, Senate negotiations have entered the final drafting stage. Sen. Cynthia Lummis said negotiators plan to publish updated CLARITY Act text on July 4 after months of consultations with lawmakers, industry participants, and banking representatives. The release will allow one final round of feedback before Senate leaders pursue floor action later in July. Lummis said negotiations have been underway since last Labor Day and required thousands of hours on both the CLARITY Act and the GENIUS Act, with considerable time spent addressing concerns from the banking sector.
CBDC Debate Continues; Trump Delays Signing Related Bill
Elsewhere in Washington, debate over federal digital asset policy continues. President Donald Trump recently postponed signing the 21st Century ROAD to Housing Act, despite strong bipartisan support (358 votes in the House, 85 in the Senate). Though primarily a housing bill, it includes language banning the Federal Reserve from creating or issuing a central bank digital currency through 2030. Trump said he would wait for Congress to advance the SAVE AMERICA Act instead. Treasury Secretary Scott Bessent has separately stated that a U.S. CBDC is “off the table” under the current administration, and he has encouraged lawmakers to continue advancing digital asset legislation, including the CLARITY Act.