OPINION: Why the CLARITY Act Endangers Our Security

America’s strength is more than military might. It rests on economic leadership, energy security, strong law enforcement, and our ability to prevent hostile regimes from exploiting our financial systems to undermine the country.

That is why Congress should reject the Digital Asset Market Clarity (CLARITY) Act in its current form.

By creating broad exemptions and carve-outs for crypto special interests, the legislation would interfere with law enforcement and national security officials’ ability to identify who is moving money, where it is going, and whether it is tied to sanctioned actors. Without strong anti-money laundering standards, bad actors from adversarial countries can use crypto to fund terrorism, launder money, and undermine our critical defense tools.

In Nevada, these risks are especially concerning. Our state has seen a sharp rise in cryptocurrency scams targeting seniors and families, making strong federal safeguards even more critical for protecting Nevadans and supporting law enforcement efforts.

The danger is not theoretical. North Korea stole more than $2 billion in crypto assets in 2025, most of which was used to fund their weapons program. And Iran has a history of using crypto to evade sanctions, fund terrorist proxies and move money outside the reach of U.S. authorities.

Congress cannot respond to these threats by weakening the financial tools America uses to track and stop illicit finance.

Drug cartels, human traffickers, ransomware groups, sanctioned regimes and terrorist financiers are always looking for weakness in the financial system. Any digital asset framework must strengthen America’s ability to trace illicit funds, enforce sanctions, recover stolen money and hold bad actors accountable.

America has the potential to lead the world in digital assets but only if we protect what made our markets strong in the first place: trust, transparency, accountability, and national security.

A strong market structure bill would promote innovation while preserving the tools needed to stop criminal activity, protect investors, and defend U.S. interests, which is why Congress must reject the current version of the CLARITY Act.

-Bill Walker is a Douglas County, Nevada-based finance professional and passionate outdoorsman.