CLARITY Act Would Tighten Crypto Crime Enforcement, Group Says

The Blockchain Association is pitching the CLARITY Act as a law enforcement tool, not just a market structure bill. The group argues that clear federal rules for digital assets would give investigators better visibility into transactions while cutting off offshore exchanges and weak compliance programs that criminals exploit.

Under the proposed legislation, U.S. crypto exchanges, brokers, dealers, and custodians would have to register with federal regulators, submit to examinations, and meet anti-money laundering and sanctions compliance requirements. The Blockchain Association said those obligations would help authorities investigate money laundering, fraud, terrorism financing, and sanctions evasion.

The bill also brings digital asset kiosks, commonly called Bitcoin ATMs, under federal oversight. Operators would need to register, provide transaction disclosures, and implement anti-fraud safeguards aimed at limiting scams.

Ripple Chief Legal Officer Stuart Alderoty backed the push. Rejecting the CLARITY Act would let bad actors keep exploiting the current fragmented regulatory environment, he said.