Why does the CLARITY Act include US$150 million for investigations?

The CLARITY Act would allocate US$150 million to help law enforcement agencies investigate cryptocurrency fraud and digital asset crimes. Supporters of the legislation say the funding would improve efforts to identify scammers and trace illicit transactions.

What does the CLARITY Act mean for cryptocurrency exchanges?

The CLARITY Act would require cryptocurrency exchanges to comply with Bank Secrecy Act standards. These requirements include maintaining Anti-Money Laundering programmes and filing Suspicious Activity Reports.

How is the CLARITY Act changing rules for suspicious crypto transactions?

The CLARITY Act would allow cryptocurrency exchanges and stablecoin issuers to freeze suspicious transactions for up to 30 days. Law enforcement agencies could request written extensions that increase the hold period to as much as 180 days.

What does the CLARITY Act mean for crypto regulation in the United States?

The CLARITY Act seeks to create clearer distinctions between digital commodities and securities. Supporters of the bill say the framework would reduce uncertainty around which federal regulator oversees specific digital assets.

What are the latest developments for the CLARITY Act in Congress?

The CLARITY Act recently advanced from the Senate Banking Committee in a 15-9 vote. Supporters of the legislation say the bill would combine market structure rules with stronger tools for investigating cryptocurrency-related crime.

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CLARITY Act includes $150M fraud fund

Written by Isaac FrancisPublished Jun 16, 2026, 11:37 PM

The CLARITY Act would allocate US$150 million to help law enforcement investigate cryptocurrency fraud and digital asset crime.
The proposal would allow certain suspicious crypto transactions to be frozen and would expand compliance requirements for digital asset firms.
Supporters say the legislation aims to combine clearer crypto market rules with stronger enforcement tools.

Senator Cynthia Lummis said the Digital Asset Market Clarity Act would allocate US$150 million to help law enforcement agencies investigate cryptocurrency fraud and other digital asset crimes.

The proposal comes as lawmakers continue debating crypto regulation in the United States, with supporters arguing that clearer market rules and stronger enforcement mechanisms are needed to address criminal activity.

“CLARITY includes $150 million for law enforcement to track down scammers and bad actors in the digital asset space,” said Senator Cynthia Lummis.

The legislation would allow cryptocurrency exchanges and stablecoin issuers to freeze suspicious transactions for up to 30 days, while law enforcement agencies could seek extensions of up to 180 days through written orders, and digital asset firms would be required to comply with Bank Secrecy Act obligations including Anti-Money Laundering programmes and Suspicious Activity Reports.

Supporters of the bill say the measures would improve the ability of investigators to trace illicit funds and respond to suspected fraud; following the announcement there was no direct share price reaction because the CLARITY Act is proposed legislation rather than a publicly traded company.

The bill also seeks to resolve longstanding disagreements between the Securities and Exchange Commission and Commodity Futures Trading Commission by establishing distinctions between digital commodities and securities and requiring exchanges to separate customer assets from company funds.

Momentum behind the CLARITY Act increased after it advanced from the Senate Banking Committee in a 15-9 vote, while separate legislation introduced earlier this month proposes a dedicated Department of Justice task force to investigate cryptocurrency theft and coordinate enforcement efforts across federal agencies.