Opposing the Clarity Act because digital assets have been used for fraud is shortsighted and intellectually dishonest. Every medium of exchange (e.g. cash, checks, wires, ACH, and credit cards) has been used for fraud. What stops fraud is giving law enforcement the tools, resources, and legal clarity to go after criminals. I say this as someone who has worked directly with local law enforcement, Secret Service, FBI, and DOJ to go after criminals. The Clarity Act contains explicit mandates designed to combat financial crime, strengthen anti-money laundering enforcement, and enhance law enforcement collaboration. Section 201 — BSA & Sanctions Compliance for Digital Commodity Entities: Formally brings digital commodity brokers, dealers, and exchanges under the Bank Secrecy Act (BSA) and OFAC sanctions rules. Entities must build formal AML/CFT programs, designate compliance officers, conduct independent audits, and file Suspicious Activity Reports (SARs) with FinCEN. Section 202 — Risk-Based Examination Standards: Mandates that Treasury and federal regulators establish tailored, risk-based examination standards to audit the adequacy of reporting obligations, customer verification, and AML/CFT programs across registered entities. Section 203 — Public-Private Information Sharing Pilot (Preventing Illicit Finance Through Partnership Act): Authorizes a formal 5-year pilot program for federal agencies (DOJ, FBI, DEA, Treasury, FinCEN, IRS-CI, OFAC, Secret Service, and DHS) to share live threat intelligence directly with designated private sector entities. This creates explicit safe harbor protections for platforms assisting law enforcement in freezing and seizing illicit funds in real time. Section 204 — Independent Financial Technology Working Group to Combat Terrorism & Illicit Finance: Establishes an interagency working group (Treasury, DOJ, FBI, Secret Service, DHS, ODNI, and blockchain intelligence firms) to track, analyze, and report annually on illicit usage by foreign terrorist organizations, state sponsors of terrorism, and transnational criminal syndicates. Section 205 — Crypto Kiosk / ATM Regulation: Directly targets kiosk-based scams and consumer fraud by mandating operational registration, transaction limits, and a dedicated, rapid-response contact point specifically for law enforcement investigations. Section 305 — Temporary Holds Safe Harbor: Explicitly allows exchanges and digital asset service providers to place short temporary holds on suspicious transactions, including upon receipt of a formal written request from law enforcement, without fear of private civil liability. Section 302 & Section 401 — SEC & CFTC Anti-Fraud Enforcement: Explicitly grants/preserves market manipulation and anti-fraud enforcement powers for both the CFTC (over digital commodity spot markets) and the SEC (over registered digital asset platforms and permitted payment stablecoins). Section 308 — Preservation of State Anti-Fraud Authority: Clarifies that nothing in the federal market structure preempts or limits state securities regulators or attorneys general from prosecuting fraud within their jurisdictions.