US's Largest Police Union Strengthens Opposition to Crypto Bill... Concerns Over Weakening Congressional Legislative Momentum

On April 27, 2026, the Fraternal Order of Police (FOP), the largest police union in the United States, raised its voice in opposition to major cryptocurrency legislation, creating a significant turning point in legislative discussions. According to a report by Punchbowl News, this move suggests a deepening rift between lawmakers seeking to provide regulatory clarity for digital assets and law enforcement authorities concerned that the bill will undermine efforts to combat financial crime.

Cryptocurrency legislation must not hinder the investigative capabilities of law enforcement agencies and must prioritize public safety above all else.

The FOP's warning is expected to act as a significant variable in the 'Vault' legislative process. With the direct intervention of the most influential police organization in the U.S., analysts suggest that the momentum for the cryptocurrency regulatory proposal, which had been pushed through bipartisan cooperation, could be lost.

Congressional Legislative Status and Tax Regulation Proposals

On March 27, 2026, Republican Representative Max Miller and Democratic Representative Steven Horsford introduced a bipartisan bill to establish tax rules for digital assets. This 26-page draft aims to resolve the regulatory uncertainty that cryptocurrency companies have long demanded, and discussions to proceed with relevant markup procedures within Congress have continued throughout April.

• March 27, 2026: Introduction of the Miller-Horsford bipartisan cryptocurrency tax bill
• April 21, 2026: House Homeland Security Committee holds a hearing on cryptocurrency fraud and transnational crime
• April 25, 2026: Bank Policy Institute (BPI) calls for strengthened Anti-Money Laundering (AML) regulations for cryptocurrencies
• April 27, 2026: Fraternal Order of Police (FOP) escalates warning against the bill

On April 21, 2026, Chairmen Michael Guest and Andy Ogles of the subcommittees under the House Homeland Security Committee led a hearing on online scams and cryptocurrency fraud. They warned of the risks of transnational criminal organizations using digital assets as a means of extortion and emphasized the need for a strict monitoring system to ensure that cryptocurrency technology does not become a tool for crime.

The financial sector also appears to sympathize with the police union's concerns. In an announcement on April 25, 2026, the Bank Policy Institute (BPI) pointed out that the U.S. financial system is operating on 'two parallel tracks.' The BPI argued that while banks invest massive resources into Anti-Money Laundering (AML) efforts, the cryptocurrency sector is not subject to the same level of regulation, and called for strict AML standards similar to those of the traditional financial sector to be applied to the crypto industry.

2026 Compliance Standards and Accountability

Entering 2026, compliance standards in the cryptocurrency industry are being reorganized around 'accountability.' According to reports from Grant Thornton and Bitget, KYC and KYB beyond simple identity verification, along with real-time transaction monitoring, have become key pillars of fraud prevention. Cryptocurrency exchanges are now being called upon to play a role as entities responsible for the safety of the financial system, rather than just platform providers.

However, despite these moves to strengthen regulation, skepticism exists regarding the actual possibility of legislation. According to a report by Punchbowl News in early April 2026, K Street lobbyists were already predicting a low probability of the cryptocurrency-related bill passing. Along with complex interests within Congress, the strong opposition from the police union is a factor that makes it even more difficult for the bill to reach the floor.

The intervention of the police union is expected to place significant political pressure, particularly on moderate lawmakers. This is because it is not easy to push through a bill that sides with the cryptocurrency industry at the cost of losing support from law enforcement agencies. This could ultimately lead to a result that dampens the industry's expectations that a cryptocurrency regulatory proposal would be finalized within the first half of 2026.

Future Outlook and Key Points to Watch

In May 2026, a key point to watch will be whether Representatives Miller and Horsford will release an amended version of the bill reflecting the police union's concerns. Additionally, the markup schedule of the relevant committees and the process of further consultation with law enforcement authorities are expected to determine the fate of the bill. The confrontation between Congress and law enforcement agencies over digital asset policy is expected to continue for the time being.