Blockchain Association Casts CLARITY Act as Crypto Crime-Fighting Bill

The Blockchain Association is presenting the CLARITY Act as a crypto crime-fighting bill, arguing that clear federal rules would help law enforcement track illicit finance and move more digital asset activity under U.S. oversight.

Blockchain Association Pushes Public Safety Case

The group said the bill is not only a consumer protection measure but also a public safety proposal. Its argument centres on a simple point: regulated crypto firms operating in the United States must follow U.S. laws, work with regulators, and meet compliance duties.

The Blockchain Association said this would give investigators better visibility into digital asset activity. It also said domestic oversight would make it harder for bad actors to hide through offshore platforms, weak compliance systems, or unclear legal gaps.

“Clear rules empower law enforcement,” the group said, adding that responsible companies can become stronger compliance partners once they operate within a clear federal framework.

Ripple Chief Legal Officer Stuart Alderoty also backed the public safety argument. He said voting against the CLARITY Act would allow bad actors to keep exploiting the current unregulated crypto environment.

CLARITY Act Expands Crypto Oversight

The CLARITY Act would place digital asset exchanges, brokers, dealers, and custodians under stronger federal oversight. These firms would face registration, supervision, examinations, record-keeping, reporting, and enforcement requirements.

The bill also expands anti-money laundering, sanctions, and compliance obligations for regulated digital asset intermediaries. Supporters say this framework would help agencies investigate money laundering, fraud, terrorism financing, sanctions evasion, and other financial crimes.

As reported by CoinGape, the bill passed the House 294-134 in July 2025 and cleared the Senate Banking Committee 15-9 in May 2025. Those votes have kept the proposal central to the debate over U.S. crypto market structure.

The bill would also bring digital asset kiosks, often called Bitcoin ATMs, under federal oversight. Operators would face registration, transaction disclosures, and anti-fraud measures aimed at reducing abuse by scammers and criminal networks.

Law Enforcement Groups Back Framework

The Blockchain Association also defended the Blockchain Regulatory Certainty Act, known as BRCA, against criticism. The group said BRCA does not block investigations or prosecutions tied to money laundering, fraud, sanctions violations, terrorism financing, or other crimes.

Instead, the group said BRCA clarifies that developers who do not control customer funds should not be treated as financial intermediaries only because they write software.

Law enforcement groups have also backed parts of the proposal. The National Organization of Black Law Enforcement Executives endorsed the CLARITY Act, calling it legislation that provides “meaningful new capabilities while preserving longstanding criminal enforcement authorities.”

Supporters argue that public blockchains already help investigators trace ransomware operators, narcotics traffickers, sanctions evaders, and terrorist financiers. The Blockchain Association said the current system lacks the federal framework law enforcement needs, while the CLARITY Act would expand oversight, improve cooperation, and strengthen tools against illicit finance.

To understand how new rules may affect trading, investors can review the top fully compliant U.S. crypto exchanges.