The White House hosts law enforcement groups to discuss CLARITY Act concerns
The two-day meeting aims to address law enforcement worries that crypto's biggest regulatory bill could inadvertently shield illicit finance.
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Add us on Google by Editorial Team Jun. 9, 2026The White House is sitting down with law enforcement groups this week to hash out concerns about the Digital Asset Market Clarity Act, the sweeping crypto regulatory bill that cleared the Senate Banking Committee last month. The two-day meeting, scheduled for June 9-10, comes as debate intensifies over whether the legislation does enough to prevent bad actors from exploiting digital assets.
The CLARITY Act, formally designated H.R. 3633, represents an attempt to draw clear lines between SEC and CFTC jurisdiction over digital assets.
What law enforcement wants changed
Law enforcement groups worry that certain provisions in the bill, particularly developer liability protections inherited from the Blockchain Regulatory Certainty Act, could make it harder to pursue criminals using crypto for illicit financing. Investigators are also flagging what they see as gaps in regulatory tools designed to track sanctions evasion and monitor mixer services.
AdvertisementPatrick Witt, a White House official, has called the CLARITY Act “the most pro-law enforcement crypto bill ever considered by Congress.”
The Blockchain Association has pointed to several provisions it says strengthen law enforcement’s hand. These include enhanced Bank Secrecy Act obligations for digital asset businesses, new information-sharing mechanisms with federal agencies, and safe harbors that allow exchanges to voluntarily hold suspicious transactions at law enforcement’s request. The legislation also includes a pilot program designed to foster public-private collaboration on illicit finance.
The political math so far
The CLARITY Act was first introduced in May 2025 during what Capitol Hill insiders dubbed “Crypto Week.” The bill cleared the Senate Banking Committee on May 14, 2026, with bipartisan support.
On June 2, a letter signed by 160 former national security and law enforcement officials urged the Senate to advance the bill. The letter argued that bringing digital asset activity onshore, under clear US regulatory oversight, would give investigators better visibility into crypto transactions than the current fragmented system provides.
On June 4, the Blockchain Association hosted a virtual town hall featuring Sen. Cynthia Lummis and Rep. Tom Emmer, two of the bill’s most prominent congressional champions.
What this means for investors
The CLARITY Act’s primary function is to define which digital assets fall under SEC jurisdiction as securities and which belong to the CFTC as commodities. The mixer and sanctions evasion provisions are particularly worth watching. Any amendments that give regulators broad authority to restrict privacy-preserving protocols could have direct market consequences for tokens associated with those services. Conversely, if the final bill maintains the developer liability protections that law enforcement opposes, expect continued friction between the industry and federal investigators.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
