CLARITY Act Gains Another Law Enforcement Endorsement Even as Passage Odds Fall

The CLARITY Act continues to gain support from several stakeholders, with the latest being the Major Cities Chiefs Association (MCCA), a major law enforcement group. Despite this, the odds of passing remain at 30%, with Democrats still pushing for amendments in the ethics and DeFi provisions.

Major Cities Chiefs Association Endorses CLARITY Act

In a letter addressed to Senator Tim Scott and Elizabeth Warren, the law enforcement group endorsed the latest version of the crypto bill following revisions that they noted address concerns that the law enforcement community expressed. The MCCA specifically highlighted the fact that the new title includes additional law enforcement provisions.

Furthermore, they noted that the latest CLARITY Act draft includes state and local enforcement agencies in Sections 10203, 10204, and 10309. “The inclusion of these provisions represents a meaningful step toward improving the ability of law enforcement to investigate financial crimes involving digital assets,” the letter read.

The MCCA is the latest law enforcement group to show support for the crypto bill after initial opposition from these groups, as they argued that the Blockchain Regulatory Certainty Act (BRCA), which protects crypto software developers, will make it harder to crack down on illicit finance.

Their endorsement of the CLARITY Act comes as the crypto bill faces a race against time, with opposition still lingering over the ethics and BRCA provisions. As CoinGape reported, Senator Thom Tillis plans to send a bipartisan ethics agreement to the White House by tomorrow for President Trump’s approval.

Democrats, Prosecutors Still Pushing For BRCA Reforms

Democrats led by Senator Catherine Cortez Masto and prosecutors are still pushing for BRCA reforms, with their proposal removing the provision that shields crypto software developers from prosecution. The BRCA provision protects DeFi developers from being liable for crimes committed by users on their platform.

These developers will also only face prosecution if they had the intent to facilitate money laundering. At the same time, they are protected from being classified as money transmitters. With a bipartisan deal yet to be in place, the odds of the Senate passing the CLARITY Act this year continue to fall ahead of their August recess.

Data from the top crypto prediction platform Polymarket shows only a 30% chance that President Trump will sign the crypto bill into law this year. The Senate has only next week to pass the bill before the August 7 recess.

According to Punchbowl News, Democrats aren’t ruling out a vote on the bill before the recess but are unlikely to support it without an amendment to the ethics provision. Senator Tillis, a Republican, has also signaled that he is a no on the bill until they amend the ethics provision.