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FLEOA backs CLARITY Act, urges wording changes for DeFi accountability
The law enforcement group endorsed the bill while asking senators to narrow its DeFi protections and clarify who is responsible for decentralized systems.
The Federal Law Enforcement Officers Association has offered a second public endorsement for the proposed Digital Asset Market Clarity Act as lawmakers prepare for a key legislative window before the Senate’s August recess, according to Cointelegraph.
In a July 10 statement, FLEOA said it sent a letter to the US Senate Banking Committee supporting the CLARITY Act, while urging changes aimed at strengthening accountability in decentralized finance and preserving investigators’ existing powers.
Cointelegraph reports the group also asked lawmakers to narrow the bill’s DeFi protections, make clearer provisions on accountability for DeFi systems, prevent firms from using decentralization claims to avoid regulation, revise “specific intent” language to make liability easier to establish, and explicitly reaffirm that the legislation does not limit existing federal investigative authority.
The endorsement follows earlier backing, with Cointelegraph saying the bill was supported nine days earlier by the National Organization of Black Law Enforcement Executives, as both letters were positioned to counter concerns that the act could reduce the government’s ability to police crypto crime. In June, multiple law enforcement organizations raised concerns with the White House centered on Section 604, which is intended to protect developers from liability tied to users’ illicit activity on decentralized platforms.