- The National Sheriffs’ Association dropped its opposition to the CLARITY Act, citing the bill’s complexity and unresolved details.
- Prosecutors’ groups still oppose protections for noncustodial developers and seek stronger tools against illicit crypto activity.
- The CLARITY Act remains headed for a September 15 Senate vote, with several policy issues still unresolved ahead of consideration.
The National Sheriffs’ Association has dropped its opposition to the CLARITY Act ahead of a planned September 15 Senate vote. The group changed its position to neutral Thursday, citing the bill’s complexity and remaining details. The move followed discussions involving Congress, the administration and law enforcement groups over concerns surrounding crypto enforcement provisions.
Sheriffs Change Their Position on the Bill
NSA President Sheriff Troy Wellman and Executive Director Justin Smith outlined the change in a letter to Senate leaders John Thune and Chuck Schumer. The association said the legislation addresses a complex policy area requiring a regulatory framework.
It also acknowledged work by Congress, the administration and stakeholders. However, the NSA previously took a much stronger position against the measure. A May letter warned that Section 604 could broadly exempt mixers, tumblers and DeFi platforms.
The group also raised concerns about digital assets being used for money laundering, terrorism financing and sanctions evasion. Those concerns led to a White House meeting with law enforcement organizations during the summer.
Prosecutors Maintain Their Objections
The NSA’s change leaves prosecutors’ groups opposed to specific protections in the bill. The National District Attorneys Association and National Association of Assistant U.S. Attorneys continue seeking narrower protections.
Both groups want changes involving noncustodial software developers under the Blockchain Regulatory Clarity Act provisions. They also want prosecutors to have greater ability to pursue developers involved in knowingly moving illicit funds.
Meanwhile, the White House, Treasury, Congress and the crypto industry have opposed those changes. Democratic Sen. Catherine Cortez Masto supported the prosecutors’ position in a July letter.
She has not publicly changed that position, according to the provided information. The Blockchain Association’s Summer Mersinger previously defended the legislation against the NSA’s objections.
CLARITY Act Heads Toward September Vote
The Senate postponed its consideration of the CLARITY Act until September after months of negotiations. Several issues remain unresolved, including an ethics provision sought by Democrats. The NSA said its neutral position allows the legislative process to continue.
The association also thanked Congress and the administration for engaging with local law enforcement. Meanwhile, the House plans to hold final votes after the Senate returns. Those votes are expected before the midterm election, preventing the legislation from becoming law before November.
