Crypto Innovation Must Not Come at the Expense of National Security
America's strength relies on economic leadership, energy security, and strong law enforcement, says Thomas Loving, Executive Director of the Kentucky Narcotics Officers' Association. He warns that Congress should reject the CLARITY Act in its current form because it would create broad exemptions for crypto special interests, interfering with law enforcement's ability to track illicit funds.
The danger is real: North Korea stole over $2 billion in crypto assets in 2025, using most of it to fund their weapons program. Iran has a history of using crypto to evade sanctions and fund terrorist proxies. The U.S. Treasury Department sanctioned Nobitex, Iran's largest digital asset exchange, for facilitating payments tied to these activities.
Drug cartels rely on crypto to hide their identities, launder profits, and move funds quickly in and out of the United States while evading law enforcement. Without strong Know Your Customer (KYC) and Anti Money Laundering (AML) standards, bad actors can use crypto to fund terrorism, launder money for criminal activity, and undermine U.S. defense tools.
Loving emphasizes that a strong market structure bill would promote innovation while preserving the tools needed to stop criminal activity, protect investors, and defend U.S. interests. He urges lawmakers to get this right and protect the integrity of our markets, defend national security, and ensure digital asset innovation is built on trust.