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DOJ Rejects Police Groups' CLARITY Act Concerns as Baseless
The DOJ says the CLARITY Act does not create enforcement loopholes. Four law enforcement groups disagree. The Blockchain Association backs the department.
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The Justice Department has formally rejected concerns from four major law enforcement groups that the CLARITY Act would create loopholes in criminal investigations. The department called the fears factually unfounded.
The CLARITY Act, which aims to clarify how digital assets fit into existing legal categories, has put federal prosecutors and local law enforcement on opposite sides. The four groups – none named in the source – argue the act could create ambiguities that criminals would exploit. The DOJ says the legislation clarifies regulatory expectations without weakening enforcement.
"Existing protocols are strong enough to handle digital asset crimes even after the new framework kicks in," the department said in its response.
The Blockchain Association has sided with the DOJ. The industry group backs the view that the CLARITY Act poses no threat to effective law enforcement and would bring transparency the digital asset market needs. The group has an obvious interest in seeing the act pass without major amendments.