CLARITY Act Gains Ground as U.S. Sheriffs Association Turns Neutral

The National Sheriffs’ Association (NSA) has changed its stance on the Digital Asset Market Clarity Act, shifting from opposition to neutrality as Congress continues to debate the proposed crypto market structure law.

In a letter sent Thursday to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, NSA President Sheriff Troy Wellman and Executive Director Justin Smith said the decision reflects the legislation’s complexity and the number of provisions that remain unresolved.

Rather than continuing to oppose the bill, the association said it would allow lawmakers to work through the remaining issues and pursue what it described as a clear and effective regulatory framework for digital assets.

Earlier Warning Over Crypto Crime

The NSA had previously expressed serious concerns about the legislation. In May, it told the Senate Banking Committee that Section 604 could effectively give crypto mixers, tumblers and DeFi platforms broad exemptions from anti-money laundering requirements.

The organization also warned that criminals could exploit increasingly sophisticated software, algorithms and AI agents to move digital assets without adequate tracking. Such tools, it said, could potentially be used for money laundering, terrorist financing and sanctions evasion.

The concerns were later discussed with the White House. A month after the NSA issued its warning, the administration invited law enforcement organizations that had criticized the bill to discuss their objections, including concerns about provisions addressing illicit financial activity.

Blockchain Association CEO Summer Mersinger subsequently disputed the NSA’s criticism. In a July CoinDesk op-ed, she argued that the association’s concerns were misplaced and described the CLARITY Act as one of the most significant consumer-protection efforts in years.

CLARITY Act Heads Into Another Crucial Stage

The NSA’s decision to remain neutral removes a prominent law enforcement critic from the bill’s opposition ahead of a potential Senate vote in September.

The CLARITY Act has encountered repeated delays following months of negotiations. The Senate moved consideration into September without completing an initial final vote, while several key issues remain unresolved.

Among the outstanding disputes is an ethics provision sought by Democrats as a prerequisite for their support.

The House has said it intends to hold its final votes before the midterm elections shortly after the Senate returns. With the legislative calendar tightening and major disagreements still unresolved, the CLARITY Act is unlikely to become law before the November election.