Blockchain Association: CLARITY Act Will Make Crypto Too Annoying for Crooks 🕵️

The Blockchain Association is reframing the CLARITY Act as a crypto crime-fighting measure, arguing that explicit federal rules would give law enforcement sharper tools to track illicit finance and pull more digital asset activity under U.S. oversight. In its public safety pitch, the trade group said regulated crypto firms operating in the United States are already required to follow U.S. laws, work with regulators, and meet compliance duties, and that a clearer framework would extend that visibility to investigators. The Association added that domestic oversight would make it harder for bad actors to hide through offshore platforms, weak compliance systems, or unclear legal gaps. "Clear rules empower law enforcement," the group said, adding that responsible companies can become stronger compliance partners once they operate within a clear federal framework.

Ripple Chief Legal Officer Stuart Alderoty echoed the argument, stating that voting against the CLARITY Act would allow bad actors to keep exploiting the current unregulated crypto environment. Law enforcement organizations have separately endorsed the bill, saying it preserves existing criminal enforcement powers while adding new tools for prosecutors and federal agencies handling digital asset cases.

The legislative text would expand anti-money laundering requirements, sanctions compliance, registration and reporting obligations, and rules governing Bitcoin ATMs, bringing those segments under a single federal perimeter. Supporters say the combined effect is a regime in which compliant U.S. venues handle the bulk of retail and institutional flow, while non-compliant offshore venues lose market share. The Blockchain Association's messaging aligns with that outcome, positioning the bill less as a deregulatory milestone and more as a public-safety statute aimed at reducing the surface area available to fraudsters, sanctions evaders, and ransomware operators. The Association has not announced a vote date, and the bill remains before Congress for further consideration.