A major U.S. police union that represents more than 382,000 officers has reversed course and now backs the CLARITY Act — a key crypto bill — after lawmakers added language it says preserves law enforcement’s ability to investigate digital-asset crime. What changed - On July 24, Patrick Yoes, national president of the National Fraternal Order of Police (FOP), sent a letter to Senate Banking Committee chair Tim Scott and ranking member Elizabeth Warren endorsing H.R. 3633, the Digital Asset Market Clarity Act (commonly called the CLARITY Act). - The FOP pointed to revised Section 10604 — which amends the Blockchain Regulatory Certainty Act (BRCA) — and said the language does not restrict police or prosecutors from pursuing crimes involving cryptocurrencies. The union said the revision addresses its earlier concerns raised during negotiations. What the FOP says the bill delivers - Clear authority and practical tools for federal, state and local investigators to tackle fraud, organized crime and illicit finance in crypto networks. - Protections for investigators acting before suspected criminal funds leave reach, including temporary transaction holds and allowances for voluntary delays in suspicious transactions — with liability shields for firms and stablecoin issuers that cooperate with law enforcement. - Expanded anti-money‑laundering (AML) and sanctions compliance duties across parts of the crypto industry, plus updated Bank Secrecy Act treatment to clarify reporting and enforcement for digital assets. - Rules aimed at reducing fraud tied to digital asset kiosks. - Improved interagency information sharing and international AML/sanctions cooperation. - Title IX programs to fund state and local digital asset enforcement, create a national security and law enforcement training program, stand up a digital asset cyber innovation center, and add protections for older consumers. - Protections for software developers who are acting lawfully, while preserving criminal liability for people who knowingly transfer proceeds of crime or facilitate unlawful activity (the letter cites 18 U.S.C. §1960). Lingering questions - Former Fox Business reporter Eleanor Terrett noted that the BRCA provisions in the latest public bill text appeared unchanged, and she said it was unclear which edits the FOP had reviewed. That leaves open whether the union relied on earlier drafts, private assurances from lawmakers, or a different reading of existing language. The FOP’s letter and Terrett’s reporting did not identify any newly altered passage beyond Section 10604. Political timing and passage prospects - The FOP endorsement comes as the CLARITY Act faces a narrowing congressional calendar. Senate Majority Leader John Thune reportedly does not expect the Senate to take up market structure legislation before the August recess, removing a deadline that supporters had eyed for 2026 completion. After that news, Polymarket traders cut the odds of the bill passing this year to about 33%. - Industry advocates, including Ron Hammond of Wintermute, say the bill still has bipartisan support but is ensnared in election-year politics and messaging. Some senators may avoid voting for a prominent crypto bill ahead of the November campaign season, even if votes exist. The FOP’s endorsement may settle one law‑enforcement dispute, but political headwinds could still delay floor action. Bottom line The FOP’s shift to support the CLARITY Act is a notable development for lawmakers and the crypto industry: it signals law enforcement confidence that the bill preserves necessary investigative powers while establishing compliance guardrails. But ambiguity over which textual changes convinced the union — plus an increasingly crowded Senate calendar and election-year dynamics — mean the bill’s path to final passage remains uncertain. The FOP said it is willing to work with lawmakers to help secure the amended bill’s passage. Read more AI-generated news on: undefined/news