Law Enforcement Groups Warn Clarity Act Weakens Crypto Crime Oversight

Four major U.S. law enforcement groups have expressed concerns that Section 604 of the Clarity Act could create oversight gaps and weaken investigative tools in crypto crime cases.

The National District Attorneys Association, the National Association of Assistant United States Attorneys, the International Association of Chiefs of Police, and the National Sheriffs' Association sent a joint letter to Acting Attorney General Todd Blanche and White House crypto adviser Patrick Witt on June 23. They warned that Section 604's language is too broad, potentially shielding individuals or entities that facilitate digital asset movement.

The groups stated that their concern lies with the provision's exemptions for non-custodial developers and infrastructure providers, arguing that it may weaken longstanding investigative and enforcement authorities relied upon by law enforcement.

However, the Department of Justice rejected these claims on June 24, stating that the letter contained factual inaccuracies and mischaracterized administration policy. The DOJ said that law enforcement's access to relevant information would not change under the Clarity Act.