The National Sheriffs’ Association has changed its position on the Digital Asset Market Clarity Act, moving from opposition to neutral as lawmakers prepare to resume negotiations over the legislation.
In a letter to Senate leaders John Thune and Chuck Schumer on Thursday, NSA President Sheriff Troy Wellman and Executive Director Justin Smith said the group’s decision reflected the complexity of the bill and the significant number of provisions that remain unresolved.
The association said it would now allow Congress to continue working through the legislation in an effort to establish a clear and effective regulatory framework for the digital-asset industry.
Law Enforcement Concerns Shift
The NSA previously raised strong objections to the bill. In May, the organization warned the Senate Banking Committee that Section 604 could provide what it called broad protection from anti-money laundering requirements for crypto mixers, tumblers and decentralized finance platforms.
The group also expressed concern that criminals could take advantage of evolving software, algorithms and AI-powered agents to move digital assets without sufficient oversight. Such tools, it warned, could potentially facilitate money laundering, terrorist financing and sanctions evasion.
Those concerns prompted further discussions. In June, the White House brought together law enforcement groups that had opposed the crypto market structure legislation to discuss their objections and explore potential changes to provisions addressing illicit finance.
Blockchain Association CEO Summer Mersinger later challenged the NSA’s position in a July CoinDesk op-ed, arguing that the association had misunderstood the bill and describing the legislation as a significant consumer-protection measure.
Senate Debate Continues
The NSA’s decision to adopt a neutral stance removes a prominent law enforcement critic from the opposition ahead of the Senate’s expected September consideration of the CLARITY Act.
The legislation has faced months of negotiations and was pushed into September without an initial final Senate vote. Several major issues remain unresolved, including an ethics provision that Democrats have said must be addressed before they can support the bill.
The House has also indicated that it intends to complete its final votes before the midterm elections, shortly after lawmakers return. With the legislative timetable tightening, the CLARITY Act is now unlikely to reach President’s desk before the November election.
