On June 23, 2026, four U.S. law enforcement groups sent a letter to federal officials opposing Section 604 of the CLARITY Act. The letter, addressed to Acting Attorney General Todd Blanche and Patrick J. Witt, stated that the provision could create oversight gaps and hinder investigations into illicit digital asset activity.
Coalition Represents Over 70,000 Law Enforcement Professionals
The signatories include 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. Nelson O. Bunn Jr., Kaycee Nail, David B. Rausch, and Justin Smith signed on behalf of their organizations, representing more than 70,000 prosecutors, investigators, and public safety officials.
While the groups support a clear digital asset framework, they insist on stronger accountability measures. Their primary concern is Section 604, the "Blockchain Regulatory Certainty Act." They argue that broad exemptions could limit oversight and complicate tracking financial flows tied to crimes.
Digital Assets Tied to Major Crime Categories
The letter lists offenses where digital assets frequently appear: narcotics trafficking, fraud, child exploitation, ransomware, sanctions evasion, terrorism financing, and organized crime. The groups warn that under Section 604, certain crypto participants—including mixers, tumblers, and some decentralized finance (DeFi) businesses—could bypass registration, know-your-customer (KYC), Bank Secrecy Act, and anti-money laundering (AML) requirements.
The organizations also criticized other CLARITY Act provisions for failing to create safeguards comparable to those for traditional financial institutions. This absence, they say, leaves a loophole for illicit actors.
Weeks of Talks Preceded the Letter
The letter follows weeks of meetings between law enforcement groups, the administration, Congress, and the crypto industry, focusing largely on Section 604. Notably, the National Fraternal Order of Police and the National Association of Police Organizations, which participated in earlier discussions, did not sign the letter. The groups said they remain open to working with officials to refine the bill's language while continuing to voice concerns about enforcement tools and reporting requirements.