- Cynthia Lummis’ CLARITY Act proposes $150M to help law enforcement investigate crypto scams.
- The bill seeks clearer crypto rules while giving regulators stronger tools to track financial crimes.
- The CLARITY Act outlines new oversight roles for the SEC and CFTC as lawmakers debate crypto regulation.
Senator Cynthia Lummis said the Digital Asset Market CLARITY Act would provide $150 million in funding for law enforcement agencies to investigate cryptocurrency scams, underscoring lawmakers’ efforts to strengthen oversight as digital-asset adoption grows.
In a June 16 post on X, Lummis said the funding would give authorities additional resources to pursue fraud cases involving digital assets. The provision comes as lawmakers discuss a broader crypto market structure bill aimed at creating clearer rules for the industry, improving consumer protections, and defining the role of regulators.
The policy was defined as regulation and enforcement, since, according to Lummis, more regulations must come together with stronger enforcement against crypto crime. According to the proponents of the law, the additional funds can be used for handling fraudulent cases until the regulators decide how to deal with cryptocurrencies in the U.S.
New Powers for Investigators and Regulators
The CLARITY Act includes several measures aimed at strengthening enforcement capabilities. Under the proposal, crypto exchanges and stablecoin issuers could temporarily freeze suspicious transactions for up to 30 days. Additionally, law enforcement agencies could request extensions through written orders. Those extensions could stretch the hold period to 180 days.
Related: FBI Warns Crypto Scammers Are Using Couriers to Collect Victims’ Cash
Moreover, the legislation would place digital asset companies under Bank Secrecy Act requirements. Firms would need anti-money laundering programs and would submit Suspicious Activity Reports. Hence, investigators could trace illicit transactions more efficiently. Supporters believe these tools would improve consumer protection and strengthen market integrity.
The bill also addresses long-running disputes within federal regulators. For some time now, crypto firms have been uncertain whether certain tokens are securities or commodities. Therefore, the law was crafted to define these jurisdictional lines more clearly.
Clear Rules and Growing Political Support
The proposal assigns oversight responsibilities based on asset classifications. The SEC would regulate digital asset securities and new token offerings. However, the CFTC would oversee spot digital commodities, including Bitcoin and Ethereum. The bill also requires exchanges to separate customer funds from corporate assets.
Lummis has earlier stressed the need for modern crypto regulations. She recently wrote, “When the Clarity Act becomes law, for the first time, there will be a consumer-friendly disclosure framework for digital assets. Not retrofitted from 1933. Built for 2026 and beyond.”
The legislation continues to gain support in Washington. It cleared the House with bipartisan backing and advanced through the Senate Banking Committee. Additionally, more than 200 crypto firms have urged Senate leaders to schedule a floor vote quickly.
Related: Tennessee Moves to Ban Cryptocurrency ATMs Over Fraud Concerns
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