160 Former Security Officials Join Blockchain Association In Urging Senate To Pass CLARITY Act On Crypto Crime Prevention

Former Security Leaders Frame Crypto Rules As National Security Issue

A growing coalition of former national security, intelligence, and law enforcement officials is urging the US Senate to move forward with the CLARITY Act, arguing that stronger crypto market rules are essential for combating financial crime and keeping digital asset activity under American oversight.

In a letter sent to Senate Majority Leader John Thune and Senate Democratic Leader Charles Schumer, 160 former officials backed the legislation and described digital asset market structure as a matter of both law enforcement and national security.

The initiative was coordinated by the Blockchain Association, which has stepped up its efforts to rally support for the bill as it advances through Congress.

The signatories warned that the absence of clear federal rules risks pushing crypto activity into offshore jurisdictions, making transactions harder for US authorities to monitor and investigate.

“The United States has long led the world by pairing innovation with the rule of law. The Clarity Act advances that tradition. It strengthens American competitiveness, protects American consumers, supports American law enforcement, and reinforces America’s role as the global standard-setter for financial integrity and technological leadership.”

“We urge the Senate to advance the Clarity Act and to support a framework that strengthens both law enforcement capabilities and our national security.”

How The Bill Expands Enforcement Powers

Supporters of the legislation argue that the CLARITY Act is not designed to reduce oversight but to strengthen enforcement capabilities across the digital asset sector.

According to the letter, the proposal would expand Bank Secrecy Act and sanctions compliance requirements to digital asset brokers, dealers, and exchanges.

It would also introduce additional anti-money laundering obligations, reporting requirements, and monitoring measures across parts of the crypto industry.

The legislation includes a Treasury-led information-sharing programme involving agencies such as the Department of Justice, FBI, DEA and private sector participants.

It would also establish a permanent interagency working group focused on investigating crypto-related illicit finance and strengthening coordination between government agencies.

The proposal further introduces stricter standards for crypto ATMs, including reporting obligations, transaction limits and enhanced monitoring requirements.

Some provisions could also affect certain trading protocols that are not fully decentralised, subjecting them to anti-money laundering requirements, suspicious activity reporting and independent audits.

Blockchain Association President and CEO Summer Mersinger said the legislation should not be viewed as a deregulatory measure.

“These are not deregulatory measures. They are enhanced enforcement tools designed to improve visibility, coordination, compliance, and accountability across digital asset markets.”

Debate Continues Over Ethics Provisions

While support for the bill continues to grow, lawmakers remain divided over whether additional ethics provisions should be attached to the legislation.

Discussions in Congress have centred on potential restrictions that would prevent elected officials from participating in crypto-related business ventures.

The debate has attracted increased attention due to President Donald Trump's involvement in digital asset businesses.

Despite those discussions, supporters of the bill maintain that establishing a clear regulatory framework remains the immediate priority, arguing that greater oversight would make it more difficult for criminal organisations to launder money, evade sanctions and exploit regulatory gaps.

The push for stronger regulation comes as concerns over illicit activity in digital assets remain a focus for policymakers.

According to data cited by the Bank Policy Institute, illicit crypto flows increased by 162% year-on-year in 2025.

Senate Vote Draws Closer As Industry Lobbying Intensifies

Momentum behind the CLARITY Act has increased since the Senate Banking Committee approved the legislation in a bipartisan 15-9 vote in May.

The bill has since been placed on the Senate Legislative Calendar, positioning it for a full Senate debate once leadership schedules floor consideration.

Supporters believe the legislation could finally address the long-running jurisdictional dispute between the Securities and Exchange Commission and the Commodity Futures Trading Commission over digital asset oversight.

At the same time, the Blockchain Association is expanding its advocacy campaign in Washington.

The organisation plans to meet with lawmakers across 18 Senate offices and will host a virtual town hall focused on the bill’s law enforcement and national security implications.

The event is expected to feature Senator Cynthia Lummis, House Majority Whip Tom Emmer and Patrick Witt, Executive Director of the White House President’s Council of Advisors for Digital Assets, as supporters seek to build additional momentum ahead of a Senate vote.