CLARITY Act sets aside $150M for crypto fraud investigations

Supporters argue these measures make it easier to trace illicit funds while giving agencies legal mechanisms to respond faster to suspected fraud.

The CLARITY Act also tries to resolve long-running disputes between the SEC and CFTC over digital asset oversight. Cryptocurrency companies have faced years of uncertainty as the two agencies took different views on how tokens should be classified.

Lawmakers backing the bill say it would establish clear distinctions between digital commodities and securities, and require exchanges to keep customer assets separate from company funds – a safeguard aimed at preventing failures like the FTX collapse.

The law enforcement funding arrives as Congress considers additional crypto-crime measures. Earlier this month, Representatives Lance Gooden and Josh Gottheimer introduced the Federal Cryptocurrency Theft Enforcement and Coordination Act, which would create a dedicated crypto theft task force within the Department of Justice.

That task force would coordinate investigations across the DOJ, FBI, Department of Homeland Security, Homeland Security Investigations, and FinCEN. Responsibilities include tracing stolen assets, improving investigative techniques, supporting victims, and assisting state, local, and international authorities.

The CLARITY Act advanced out of the Senate Banking Committee in a 15-9 vote. With the congressional calendar tightening ahead of election season, backers argue the U.S. needs a clear federal framework that addresses criminal activity while providing regulatory certainty for legitimate digital asset businesses.