CLARITY Act Gains as Law Enforcement Group Drops DeFi Opposition

The MCSA also proposed amendments. It wants state and local law enforcement to have a formal role in the Treasury study required under Section 309 and in any advisory bodies the CLARITY Act establishes. State and local agencies investigate the overwhelming majority of crypto crimes, the group said, and should help shape legislative and policy recommendations. The letter added that a new federal framework must come with resources for state and local enforcement.

The shift comes days after the National Organization of Black Law Enforcement Executives (NOBLE) endorsed the bill – the first law enforcement group to do so. NOBLE said the bill's provisions "provide law enforcement with meaningful new capabilities while preserving longstanding criminal enforcement authorities."

Polymarket odds of President Trump signing the CLARITY Act this year have climbed above 40%, sitting at 44% as of this writing. The odds had dropped to new lows earlier this week before the MCSA announcement.

Ethical concerns remain. Senator Gillibrand has again called for a ban on elected officials and their spouses from issuing or sponsoring crypto assets, including memecoins.