The Blockchain Association publicly classified the CLARITY Act in July as a measure to combat cryptocurrency crime and strengthen law-enforcement cooperation. Federal rules would clearly allow investigators to trace illegal financial activity and bring more digital-asset activity under U.S. regulatory oversight. The bill would expand AML (anti-money laundering) obligations, sanctions compliance requirements, and registration and reporting rules for digital-asset exchanges, brokers, dealers, and custody providers, and would bring Bitcoin ATMs under federal regulation.
The Blockchain Association’s stance: the argument that clear federal rules empower law-enforcement cooperation
The Blockchain Association said that the CLARITY Act is not only a consumer-protection measure, but also a public-safety proposal. Its core argument is that regulated cryptocurrency companies operating within the United States must comply with U.S. law, cooperate with regulators, and meet compliance obligations—enabling investigators to gain a more complete understanding of digital-asset activity.
The Blockchain Association said that in-country regulation makes it harder for criminals to conceal crimes through offshore platforms, weak compliance systems, or unclear legal loopholes, and directly cited its position: “Clear rules give law-enforcement departments greater authority,” adding that responsible companies would become stronger compliance-and-cooperation partners after operating within a clear federal framework.
Ripple’s Chief Legal Officer Stuart Alderotdi expressed support, saying that voting against the CLARITY Act would allow criminals to continue using the current unregulated cryptocurrency environment.
The CLARITY Act’s expanded regulatory scope
The CLARITY Act would strengthen federal oversight of digital-asset exchanges, brokers, dealers, and custody providers, expanding compliance in five key areas:
Anti-Money Laundering (AML): AML obligations for regulated digital-asset intermediaries would be strengthened
Sanctions compliance: expanding requirements for regulated intermediaries to comply with sanctions
Registration and reporting: companies must fulfill obligations to register with relevant authorities and provide regular reports
Recordkeeping and review: exchanges and other entities must meet requirements for recordkeeping and for allowing law-enforcement review
Bringing Bitcoin ATMs under regulation: digital-asset self-service terminals (Bitcoin ATMs) are included in federal oversight for the first time, and operators will face requirements for registration, transaction disclosure, and anti-scam measures designed to reduce fraudsters and prevent abuse by criminal networks
Supporters say the above framework would help regulators investigate money laundering, fraud, terrorist financing, evading sanctions, and other financial crimes.
Law-enforcement response: a support statement from the National Black Law Enforcement Executives organization and a BRCA defense
The National Black Law Enforcement Executives organization expressed formal support for the CLARITY Act, calling it legislation that “preserves long-standing criminal enforcement powers while providing meaningful new capabilities.” The Blockchain Association also defended the Blockchain Regulatory Clarity Act (BRCA) in response to criticism that it could hinder law enforcement: the association said BRCA explicitly states that developers who do not control customer funds should not be treated as financial intermediaries merely for writing software, and that BRCA will not block investigations or prosecutions related to money laundering, fraud, violations of sanctions, terrorist financing, or other criminal conduct.
Supporters also noted that public blockchains have helped investigators track ransomware operators, drug traffickers, sanctions evaders, and terrorist financiers.
FAQ
What is the CLARITY Act’s latest voting record in Congress?
According to CoinGape, the CLARITY Act passed the U.S. House of Representatives in July 2025 by a vote of 294 to 134 and passed the Senate Banking Committee in May 2025 by a vote of 15 to 9; the schedule for full-chamber votes will follow official U.S. congressional procedures.
What specific provisions does the CLARITY Act include for Bitcoin ATMs?
Per the bill’s provisions, digital-asset self-service terminals (Bitcoin ATMs) will be included in the federal regulatory scope for the first time. Operators will face requirements for registration, transaction disclosure, and anti-scam measures intended to reduce fraudsters and prevent the misuse of criminal networks.
How does the Blockchain Association respond to criticism that the BRCA could hinder law enforcement?
The Blockchain Association said that BRCA will not hinder investigations or prosecutions related to money laundering, fraud, sanctions violations, terrorist financing, or other criminal conduct. The association emphasized that BRCA’s core rule is that developers who do not control customer funds should not be treated as financial intermediaries solely because they write software.
