US Federal Law Enforcement Association backs CLARITY Act, urges tougher DeFi rules

The Federal Law Enforcement Officers Association (FLEOA), representing more than 34,000 active and retired agents from over 65 federal agencies, announced its support for the CLARITY Act, a bill that would create a regulatory framework for digital assets in the United States. The association urged the Senate to adopt five amendments to strengthen the bill’s provisions on decentralized finance (DeFi). Key proposals include replacing the “specific intent” requirement for criminal liability with a “knowledge” standard, clarifying liability for participants in decentralized protocols, preventing companies from masquerading as decentralized to evade obligations, preserving existing criminal liability, and ensuring the law does not hinder investigations or court orders. The Senate Banking Committee has already approved the legislation with a 15‑9 vote, but a full Senate debate date has not been set. In parallel, U.S. banking groups have asked for rules limiting stable‑coin incentives to keep them from competing directly with traditional bank deposits.