Sheriffs Step Back, But Prosecutors Hold Firm The National Sheriffs' Association (NSA) has moved to a neutral position on the Digital Asset Market Clarity Act, becoming the last major police
The National Sheriffs' Association (NSA) has moved to a neutral position on the Digital Asset Market Clarity Act, becoming the last major police group to drop its active opposition to the crypto market structure bill. The NSA announced the shift in a letter to Senate leadership, citing the bill's complexity and the number of important details still under consideration.
The group had previously warned that the legislation could exempt crypto mixers, tumblers, and decentralized finance platforms from anti-money-laundering rules, potentially enabling illicit finance.The Major County Sheriffs of America had already softened to neutral in July after securing assurances about state and local involvement in Treasury-led regulatory studies.
Federal prosecutors, however, are not following suit. According to @EleanorTerrett, the National District Attorneys Association and the National Association of Assistant US Attorneys are not expected to change their positions. Both bodies want narrower protections for developers who never hold user funds, so that prosecutors retain the ability to charge individuals for knowingly moving illicit money. The National District Attorneys' Association has written that Section 604 of the bill "would severely impede the ability of law enforcement and prosecutors to investigate, trace, and prosecute criminal activity involving cryptocurrency and other digital assets." The White House and the crypto industry have refused to accept those narrower terms.
The CLARITY Act faces a significant procedural test on September 15, 2026, when the Senate will vote on a motion that determines whether the legislation has a realistic chance of clearing the chamber this year. The vote is not a direct vote on the bill itself, but the Senate requires a 60-vote supermajority to proceed.Republicans hold 53 seats, meaning at least seven Democrats would need to join them.
The NSA's earlier opposition had given swing-vote Democrats, including Sen. Catherine Cortez Masto (D-Nev.), political cover to withhold support over the law enforcement provisions.The shift removes a prominent law-enforcement critic before the September vote, though unresolved ethics provisions and the tight congressional calendar make passage before the November election uncertain.
The CLARITY Act would create a regulatory framework for cryptocurrencies and other digital assets, much like the GENIUS Act did for payment stablecoins in 2025.The House passed the bill in July 2025 by a 294-134 vote, but disagreements in the Senate over ethics, rewards, DeFi, and regulatory authority have prevented swift passage.
Sources:Semafor: Key law enforcement group flips on crypto billCoinDesk: National Sheriffs' Association pivots to neutral stance on Clarity ActThe Hill: Obstacles threaten success of Clarity Act in Senate
