More than 160 former national security, intelligence, and law enforcement officials are urging the U.S. Senate to move forward with the CLARITY Act, saying the legislation would strengthen efforts to combat illicit finance within the cryptocurrency sector.
The appeal was delivered in a letter to Senate Majority Leader John Thune and Democratic Leader Chuck Schumer and was coordinated by the Blockchain Association.
Former Officials Support Clear Rules for Crypto Markets
The Blockchain Association announced the campaign on X, describing digital asset market structure as a “law enforcement and national security priority.” The letter emphasizes that as crypto activity expands worldwide, it is increasingly important for the United States to establish a clear regulatory framework to govern and oversee the industry.
Signatories warn that failing to set firm rules could drive more activity offshore into opaque markets that are harder for U.S. authorities to monitor and investigate, creating opportunities for illicit finance to flourish.
“It is critical for the United States that this activity occurs under American rules, with American oversight, and subject to American law,” the letter says.
The former officials argue that a robust U.S. framework would enhance national security, increase transparency for law enforcement, and equip investigators with better tools to fight financial crime—making it more difficult for criminal networks to launder money, evade sanctions, or defraud victims.
Data from the Bank Policy Institute indicates illicit crypto flows rose 162% year-on-year last year, underscoring the signatories’ concerns. The CLARITY Act’s proponents stress that the bill is not intended to deregulate the industry; rather, it seeks to improve enforcement, ensure compliance accountability, and enhance coordination across digital asset markets.
If enacted, the legislation would extend Bank Secrecy Act obligations and impose compliance requirements on digital commodity brokers, dealers, and exchanges. It would also create anti-money-laundering obligations, reporting duties, and monitoring standards for market participants.
The bill also proposes a Treasury-led information-sharing pilot program that would involve agencies such as the Department of Justice, the FBI, and the DEA, along with a permanent interagency working group focused on countering illicit finance.
Senate Meetings and a Town Hall
The Blockchain Association said its members and industry participants will travel to Washington, D.C., for meetings with staff across 18 Senate offices to advocate for the bill.
The group is also organizing a virtual town hall to discuss how the CLARITY Act would support law enforcement and national security objectives. Expected participants include Senator Cynthia Lummis, House Majority Whip Tom Emmer, and industry representative Patrick Witt.
The letter concludes with a direct request that the Senate pass the CLARITY Act. The legislation recently cleared the Senate Banking Committee but continues to face opposition from some lawmakers and banking interests.