160 Former US Officials Urge Senate to Advance Crypto CLARITY Act

160 ex-national security officials urge Senate to pass the Crypto CLARITY Act, citing stronger law enforcement tools and consumer protection.

A coalition of 160 former national security, intelligence, and law enforcement professionals sent a letter to the Senate this week. They urged Senate Majority Leader Thune and Democratic Leader Schumer to advance the Digital Asset Market Clarity Act.

The letter, coordinated by the Blockchain Association, frames crypto regulation as a national security priority. The officials argue that clear rules will bring digital asset activity under U.S. oversight.

Without action, they warn, activity risks migrating offshore into markets beyond federal reach.

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The letter’s signatories stress that the bill provides prosecutors and investigators with sharper tools. These include expanded Bank Secrecy Act obligations for digital commodity brokers, dealers, and exchanges.

Anti-money laundering program requirements and sanctions compliance obligations are also part of the package.

The bill establishes a Treasury-led information-sharing pilot program. That program would involve the DOJ, FBI, and DEA alongside private sector entities. Its focus is identifying illicit finance threats and flagging emerging risks in real time.

A permanent interagency working group would also form under the bill. It would include Treasury, DHS, IRS, and the Secret Service. The group’s mandate covers developing counter-illicit-finance proposals specific to digital assets.

The letter states plainly that existing criminal and national security authorities remain fully intact. Nothing in the bill limits prosecutors from pursuing fraud, money laundering, or terrorism financing cases.

1/ Today, we’re sending a letter to Senate Majority Leader Thune and Senate Democratic Leader Schumer signed by 160 former national security, intelligence, and law enforcement professionals in support of the Clarity Act.https://t.co/1lSQkoaaXI pic.twitter.com/JYP8DYIccl

— Blockchain Association (@BlockchainAssn) June 2, 2026

Consumer Protections and Digital Asset Kiosk Safeguards in the Bill

One area drawing attention is the bill’s treatment of digital asset kiosks.

The CLARITY Act would require transaction monitoring, reporting obligations, and transaction limits at these kiosks. Anti-fraud requirements and dedicated law enforcement contacts are also included.

The Blockchain Association highlighted that these protections target seniors and other Americans vulnerable to scams.

Kiosks have increasingly been used in fraud schemes targeting older consumers. The bill creates a direct link between kiosk operators and law enforcement agencies.

Non-decentralized finance trading protocols not consistently covered under current law would also face new obligations. These include expanded AML requirements, suspicious activity report filings, and customer due diligence standards.

The bill further allows temporary holds on suspicious digital asset transactions. Law enforcement notification would be required during those holds to reinforce compliance with lawful court orders.

Senate’s Next Steps on the Digital Asset Market Clarity Act

The U.S. Senate placed the Digital Asset Market Clarity Act on its legislative calendar this week. The move makes H.R. 3633 eligible for a full floor vote. It follows bipartisan approval in the Banking Committee.

Sponsored by Rep. J. French Hill, the bill assigns primary oversight of digital commodities like Bitcoin to the CFTC. The SEC retains roles in specific areas under the framework. Senator Tim Scott called the bill a solution to years of regulatory overlap and confusion.

For far too long, America’s digital asset market was marked by regulatory uncertainty and confusion – driving innovation overseas, leaving Americans exposed, and making it harder for law enforcement to do their job.

The Clarity Act changes that by protecting consumers, keeping…

— Senator Tim Scott (@SenatorTimScott) June 2, 2026

Scott noted on X that the current environment has driven innovation overseas while leaving Americans exposed. He credited the CLARITY Act with addressing those gaps directly. The Blockchain Association is also holding meetings at 18 Senate offices to build support.

The association plans a virtual town hall later in the week focused on how the bill supports law enforcement and national security efforts.

The message from supporters, per the Blockchain Association, remains consistent: protect consumers, support law enforcement, and keep innovation onshore.