A bill that could define the future of US crypto regulation has just received crucial political momentum - while simultaneously losing one of its key figures. The Federal Law Enforcement Officers Association (FLEOA), representing over 34,000 active and retired federal officers across more than 65 agencies, officially endorsed the Digital Asset Market Clarity Act (H.R. 3633) in a July 10, 2026 letter to the Senate Banking Committee.
This marks the second major endorsement from a law enforcement body, following the National Organization of Black Law Enforcement Executives (NOBLE) earlier in July. Both endorsements are pivotal, helping dismantle arguments that the CLARITY Act would undermine the government’s ability to combat crypto-related crimes.
Support with Conditions
FLEOA noted that the bill ‘represents meaningful progress’ but still submitted several recommended revisions. They requested clearer accountability rules in the DeFi sector, prohibitions preventing companies from using ‘decentralized’ labels as cover to evade regulation, replacing the ‘specific intent’ evidentiary standard with ‘existing knowledge’, and clarifying that the legislation does not erode existing federal investigative authorities - spanning criminal cases, anti-money laundering, sanctions, and counter-terrorism financing.
Ji Kim, CEO of the Crypto Council for Innovation, stated that FLEOA’s endorsement demonstrates the bill is strong in both consumer protection and law enforcement. Mathew Silverman, National President of FLEOA, emphasized that officers need adequate tools to investigate increasingly complex financial crimes. Previously, several law enforcement groups raised concerns regarding Section 604 - a provision protecting certain software developers and non-custodial service providers from being classified as ‘money transmitters’ as long as they do not control customer funds. However, the US Department of Justice (DOJ) dismissed some of those concerns as inaccurate, and the Major County Sheriffs of America even shifted from opposition to a neutral stance following further discussions.
Tight Deadlines as Key Architect Steps Aside
This momentum comes amid a tight legislative window. The official Senate schedule sets the August recess from August 10 to September 11, making August 7 the final session day before the break - and as of July 14, an official vote for the CLARITY Act has not yet been placed on the Senate calendar. Senator Cynthia Lummis even remarked (July 8) that this might be the ‘last chance’ to pass substantial digital asset legislation before 2030, warning that other nations could establish rules first if Congress fails to act.
Ironically, just as full momentum is needed, a key White House figure is temporarily stepping down. Patrick Witt - executive director of the President’s Council of Advisors for Digital Assets and lead negotiator on critical CLARITY Act provisions, including stablecoin yields and ethics rules - will take a leave of absence in late July for several months of military training. Witt is scheduled to wrap up his duties on July 24 before reporting for Judge Advocate General (JAG) training with the Georgia Army National Guard. Cody Carbone, CEO of the Digital Chamber, confirmed that Witt had been upfront about these plans from the beginning. During Witt’s leave, deputy director Harry Jung will take over, though sources speaking to Crypto In America indicated that Witt still plans to stay involved remotely throughout his training.
The question now centers on timing: will the support of two law enforcement groups be enough to push the CLARITY Act across the finish line before the August recess, just as one of its most knowledgeable negotiators steps away from the table? The coming weeks will be a true test of how mature US crypto regulation really is.
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
