Blockchain Association-Backed Clarity Act Gains Support From 160 Former Security Officials

TLDR:

• 160 former security and intelligence officials publicly backed the Clarity Act before Senate review.
• The proposal expands AML, sanctions, and compliance duties across key crypto market participants.
• Treasury would lead a new information-sharing program targeting digital asset crime risks.
• Supporters say the bill increases enforcement tools without limiting existing criminal authorities.

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A group of 160 former national security, intelligence, and law enforcement officials has urged the U.S. Senate to advance the Clarity Act. The push adds national security backing to one of the most closely watched crypto market structure bills in Washington. 

Supporters argue the proposal would strengthen oversight while expanding enforcement tools across digital asset markets. The letter targets Senate leadership as lawmakers continue debating the future of crypto regulation in the United States.

Clarity Act Support Centers on Crypto Oversight and Enforcement

The officials outlined their position in a letter released through the Blockchain Association on June 3. They addressed the document to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer.

According to the letter, digital asset activity continues to expand globally and increasingly crosses multiple jurisdictions. The signatories argued that the United States should keep that activity under domestic regulatory oversight rather than allowing it to move offshore.

They said a federal framework could improve visibility for investigators and strengthen enforcement efforts against financial crime. The group also stated that regulatory clarity would help law enforcement agencies track illicit activity more effectively.

The letter highlighted several provisions included in the Clarity Act. Among them are expanded Bank Secrecy Act and sanctions compliance obligations for digital commodity brokers, dealers, and exchanges.

The proposal would also create a Treasury-led information-sharing pilot program involving agencies such as the Department of Justice, FBI, and DEA. The initiative would focus on illicit finance threats and emerging risks tied to digital assets.

Clarity Act Provisions Expand AML and National Security Measures

The signatories pointed to additional measures designed to strengthen anti-money laundering controls. These include broader suspicious activity reporting requirements and customer due diligence obligations for certain non-decentralized finance trading protocols.

The legislation would establish a permanent interagency working group involving Treasury, DOJ, DHS, FBI, DEA, IRS, and the Secret Service. That group would develop future anti-money laundering and counter-illicit finance proposals for digital assets.

Other provisions address digital asset kiosks through transaction monitoring requirements, reporting obligations, transaction limits, and law enforcement contact procedures. The bill also seeks to clarify sanctions compliance expectations for distributed ledger messaging systems through Treasury guidance.

According to the letter, the Clarity Act would extend Section 311 special measures authorities to digital asset activity and allow temporary holds on suspicious transactions. It would also require law enforcement notification in specific circumstances and reinforce compliance with lawful court orders.

The officials stressed that the legislation does not reduce enforcement authority. They argued that existing powers covering fraud, money laundering, sanctions evasion, terrorism financing, trafficking, and other crimes would remain unchanged under the proposed framework.

Blockchain Association shared the letter publicly, describing the Clarity Act as a framework that could strengthen coordination, compliance, and accountability across crypto markets while keeping oversight within U.S. jurisdiction.

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