The Federal Law Enforcement Officers Association (FLEOA) has endorsed the Digital Asset Market Clarity Act, commonly called the CLARITY Act, marking the second major law-enforcement backing for the crypto-regulation bill in under two weeks.
The endorsement lands less than four weeks before the Senate’s August 8 recess, a deadline that bill champion Senator Cynthia Lummis has described as a last chance for real legislation for digital assets before 2030.
This news dropped as Bitcoin is trading at $62,800, almost flat over the past 24 hours, down a modest -0.1%, with a daily trading volume of $26.9Bn.
$BTC is holding above the $62,500 level for now.
A daily close below $62,000-$62,500 would be bad for Bitcoin. pic.twitter.com/PG6yMGBp5A
— Ted (@TedPillows) July 14, 2026
FLEOA Backs the CLARITY Act Bill, With Conditions
The FLEOA submitted its letter to the US Senate Banking Committee on July 10, 2026, following backing from the National Organization of Black Law Enforcement Executives (NOBLE) nine days earlier. Together, the two endorsements directly counter the argument that the CLARITY Act would weaken the government’s ability to police crypto crime.
Ji Kim, CEO of the Crypto Council, praised the FLEOA’s letter calling the bill strong on consumer protection and law enforcement. The FLEOA also said the current version of the act made meaningful progress toward balancing technological innovation with public safety.
The endorsement is not unconditional. The FLEOA urged lawmakers to tighten DeFi, meaning financial protocols that run on public blockchains without a central intermediary, with accountability provisions, warning that the current language could let firms avoid regulation simply by claiming to operate as decentralized systems.
The association’s five specific requests are: narrow the DeFi liability protections in the bill; clarify accountability within decentralized systems; prevent firms from claiming decentralization as a regulatory shield; revise “specific intent” language to lower the bar for establishing liability; and explicitly affirm that the legislation does not restrict existing federal investigative authority.
The House takes CLARITY to Wall Street
The House (@FinancialCmte) will hold a CLARITY Act field hearing at Federal Hall on Friday, titled "How the CLARITY Act Unlocks Innovation." New York venue, industry witnesses, closing-argument framing.
The House passed this bill a year… pic.twitter.com/2UMuyfGma1
— BSCN (@BSCNews) July 13, 2026
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Law Enforcement Friction Over Section 604
The FLEOA endorsement arrives after a more turbulent stretch for the bill’s relationship with law enforcement. In June 2026, four organizations, 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, wrote to the White House with objections to Section 604 of the bill.
That section shields developers from liability for illicit activity carried out by users on their decentralized platforms, and the groups argued it could create broad exemptions that hamper investigations into crypto-related crimes.
The White House responded by convening a meeting with objecting groups in late June. Shortly after, the Major County Sheriffs of America moved to a neutral stance, having initially opposed the bill.
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August 8 Is the Hard Deadline for the CLARITY Act
The crypto bill 2026 has already cleared the Senate Banking Committee and the Senate Agriculture Committee and landed on the Senate Legislative Calendar as Calendar No. 423. A full Senate floor vote is the one remaining hurdle before a presidential signature – but the clock is tight. For a deeper look at the CLARITY Act Senate vote timeline, the bill needs enough Democratic support to clear the 60-vote threshold.
Senator Lummis framed the stakes plainly on July 8: “This is likely our last chance to get real legislation for digital assets on the books before 2030. If we fail to pass the Clarity Act, we are ensuring another country will write the rules for digital assets, and we spend the next decade catching up.”
The CLARITY Act would divide oversight of digital asset market structure between the SEC, which would regulate security tokens, and the CFTC, which would oversee digital commodities and spot markets.
It also introduces a “mature blockchain test” that determines when a token transitions from security to commodity status, a key question that has driven years of regulatory uncertainty and enforcement-led crypto regulation in the US.
The recent leadership reshuffles across major crypto firms, including those tracked in coverage of Coinbase and Grayscale executive exits, have been seen by some observers as reflecting industry expectations around potential statutory clarification.
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The post FLEOA Endorses CLARITY Act With Demands to Tighten DeFi Rules appeared first on 99Bitcoins.
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