Headline: CLARITY Act carves out $150M to hunt crypto scammers as Congress races to set new rules
The Digital Asset Market Clarity Act — commonly called the CLARITY Act — includes a $150 million funding boost for law enforcement to pursue cryptocurrency scams and other digital-asset crimes, U.S. Senator Cynthia Lummis said in an X post on June 16. The allocation is packaged inside a broader market-structure bill aimed at clarifying federal rules for digital assets while beefing up tools for investigators and consumer protections.
Why it matters
Backers say the funding will help agencies “track down scammers and bad actors in the digital asset space” and speed responses to illicit activity as lawmakers continue debating how to regulate crypto. The CLARITY Act combines regulatory definitions with enforcement-oriented changes intended to make tracing and freezing suspect funds easier — a priority after high-profile collapses such as FTX.
Key enforcement and consumer-protection provisions
- $150 million in law-enforcement funding earmarked for crypto fraud and digital-asset investigations.
- Temporary freeze authority: crypto exchanges and stablecoin issuers could freeze suspicious transactions for up to 30 days; law enforcement could extend those holds to as long as 180 days via written order.
- Bank Secrecy Act obligations: digital-asset businesses would face AML program requirements and have to file Suspicious Activity Reports like traditional financial institutions.
- Custody safeguards and classification clarity: the bill would require exchanges to keep customer assets separate from company funds and set clearer distinctions between digital commodities and securities.
Complementary proposals and coordination efforts
The CLARITY Act’s enforcement push comes as other lawmakers press for coordination on crypto crime. Earlier this month Representatives Lance Gooden and Josh Gottheimer introduced the Federal Cryptocurrency Theft Enforcement and Coordination Act, which would create a DOJ-led cryptocurrency theft task force to coordinate the DOJ, FBI, DHS (including HSI), and FinCEN. That proposal focuses on tracing stolen assets, improving investigative techniques, aiding victims, and assisting state, local and international partners.
Legislative momentum and timing
The CLARITY Act advanced out of the Senate Banking Committee in a 15–9 vote, and supporters argue the U.S. needs a coherent federal framework that both combats criminal activity and gives legitimate digital-asset firms regulatory certainty — an argument amplified as the congressional calendar tightens before the election season.
What’s next
With the bill moving through Congress and companion enforcement ideas gaining traction, the coming months could reshape how regulators and law enforcement approach crypto fraud — from freezing and tracing assets to bringing digital-asset firms into existing AML regimes.
Read more AI-generated news on: undefined/news
