A major cryptocurrency market structure bill moving through the U.S. Congress could provide law enforcement agencies with significant new resources to combat digital asset fraud and financial crime.
According to U.S. Senator Cynthia Lummis, the Digital Asset Market CLARITY Act includes a $150 million allocation aimed at helping investigators track down crypto scammers and other bad actors operating within the digital asset ecosystem.
In a post shared on X on June 16, Lummis highlighted the funding provision as part of broader efforts to create a safer and more transparent cryptocurrency market while lawmakers continue debating the future of digital asset regulation in the United States.
The funding package is embedded within the CLARITY Act, a proposed market structure framework designed to bring clearer federal oversight to cryptocurrencies while also expanding the tools available to agencies investigating crypto-related crimes.
Stronger Enforcement Powers Included
Beyond defining how digital assets should be regulated, the legislation contains several measures focused on fraud prevention and consumer protection.
One of the most notable provisions would allow cryptocurrency exchanges and stablecoin issuers to temporarily freeze suspicious transactions for up to 30 days. Under the proposal, law enforcement agencies could seek an extension through a written order, increasing the freeze period to as much as 180 days when necessary.
The bill would also place digital asset businesses under the requirements of the Bank Secrecy Act. This means crypto firms would need to establish Anti-Money Laundering (AML) programs and file Suspicious Activity Reports (SARs), similar to obligations already imposed on traditional financial institutions.
Supporters believe these measures would help investigators respond more quickly to suspected fraud, track illicit funds more effectively, and strengthen protections for consumers using digital assets.
Clearer Rules for the Crypto Industry
The CLARITY Act is also intended to resolve long-standing disagreements between federal regulators regarding how cryptocurrencies should be classified and regulated.
For years, crypto companies have faced uncertainty as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have taken different positions on whether certain digital assets should be treated as securities or commodities.
Backers of the legislation argue that the bill would establish clearer distinctions between digital commodities and securities, providing businesses with greater regulatory certainty.
The proposal would also require exchanges to keep customer assets separate from corporate funds, a safeguard aimed at preventing failures similar to the collapse of FTX.
Congress Pushes Additional Anti-Crime Measures
The CLARITY Act arrives as lawmakers consider other initiatives targeting cryptocurrency-related crime.
Earlier this month, Representatives Lance Gooden and Josh Gottheimer introduced the Federal Cryptocurrency Theft Enforcement and Coordination Act.
The proposal seeks to create a dedicated cryptocurrency theft task force within the Department of Justice. The task force would coordinate investigations involving agencies such as the DOJ, FBI, Department of Homeland Security, Homeland Security Investigations, and FinCEN. Its responsibilities would include tracing stolen crypto assets, improving investigative capabilities, supporting victims, and assisting authorities at the state, local, and international levels.
Momentum behind the CLARITY Act continues to grow after the legislation advanced through the Senate Banking Committee with a 15-9 vote.
With election season approaching and legislative time becoming increasingly limited, supporters argue that the United States needs a comprehensive federal framework that both combats criminal activity and provides clear regulatory guidance for legitimate cryptocurrency businesses operating in the country.
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