U.S. Sheriffs Association Moves From Opposition to Neutral on CLARITY Act

The National Sheriffs’ Association (NSA) has withdrawn its opposition to the Digital Asset Market Clarity Act, moving to a neutral position months after warning that the legislation could create loopholes for crypto-related crime.

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 association had reconsidered its stance because of the bill’s complexity and the many provisions still being negotiated.

The group said it now believes the legislative process should continue so lawmakers can develop what it described as a clear and effective regulatory framework for digital assets.

NSA Previously Warned of Crypto Crime Risks

The association had taken a much harder line in May, when it wrote to the Senate Banking Committee to raise concerns about Section 604 of the proposed legislation.

At the time, the NSA argued that the provision could effectively exempt crypto mixers, tumblers and decentralized finance platforms from anti-money laundering requirements. It also warned that emerging technologies, including advanced software, algorithms and AI agents, could make it easier to move digital assets anonymously.

According to the association, bad actors could potentially use those tools to launder funds, finance terrorism, avoid sanctions and transfer assets without adequate tracking or accountability.

A month later, the White House brought together law enforcement organizations that had opposed the market structure legislation to discuss their concerns. The meeting was intended to address objections surrounding provisions related to preventing illicit financial activity.

The NSA’s earlier position also drew criticism from Blockchain Association CEO Summer Mersinger. In a July CoinDesk opinion piece, Mersinger argued that the association’s concerns were misplaced and described the CLARITY Act as a major consumer-protection initiative.

CLARITY Act Heads Toward September Vote

The NSA’s decision to remain neutral removes one of the bill’s most prominent law-enforcement opponents as lawmakers prepare for a potential Senate vote in September.

The CLARITY Act has faced a lengthy and complicated legislative process. The Senate moved consideration of the bill into September without holding an initial final vote, while negotiations continue over several unresolved provisions.

One major sticking point is an ethics-related provision sought by Democrats as a condition for their support.

Meanwhile, the House of Representatives said this week that it plans to hold its final votes on the legislation before the midterm elections, shortly after the Senate returns. That timeline makes it highly unlikely that the bill will become law before November.