The Department of Justice’s Criminal Division is sounding the alarm on one of Washington’s most closely watched crypto bills, warning that certain provisions could effectively handcuff prosecutors trying to chase dirty money through digital asset networks.
The concern centers on the Digital Asset Market Clarity Act, also known as the CLARITY Act (H.R. 3633), which the Senate Banking Committee advanced on May 12, 2026, with a 15-9 vote. The bill is supposed to bring regulatory clarity to crypto markets.
The exemption problem
The specific flashpoint is Section 604 of the CLARITY Act, which provides broad exemptions for decentralized services, mixers, tumblers, and automated protocols.
On June 23, 2026, law enforcement organizations representing more than 70,000 professionals sent a formal letter to Acting Attorney General Todd Blanche laying out their objections. The signatories included the National Sheriffs’ Association and the National Association of Assistant US Attorneys, among other major law enforcement bodies.
