The National Sheriffs’ Association (NSA) has dropped its opposition to the Digital Asset Market Clarity Act, opting instead to take a neutral position as lawmakers continue to work through the legislation.
The association notified Senate Majority Leader John Thune and Minority Leader Chuck Schumer of the change Thursday. NSA President Sheriff Troy Wellman and Executive Director Justin Smith cited the bill’s complexity and the number of provisions that are still being negotiated.
The group said it would step back and let the legislative process continue, with the goal of establishing a clear regulatory framework for the digital-asset sector.
Earlier Opposition Focused on Money Laundering
The NSA had previously been among the legislation’s strongest law-enforcement critics. In a May letter to the Senate Banking Committee, it argued that Section 604 could broadly exempt crypto mixers, tumblers and decentralized finance platforms from anti-money laundering requirements.
The organization also warned that criminals could exploit emerging software, algorithms and AI agents to move digital assets without adequate traceability. Such technology, it said, could be used to launder money, fund terrorism or circumvent sanctions.
The concerns later prompted a meeting at the White House, where law enforcement organizations opposed to the crypto market structure bill were invited to discuss their objections. The talks focused in part on how the legislation would address illicit financial activity.
Blockchain Association CEO Summer Mersinger subsequently pushed back against the NSA’s criticism. Writing in a July CoinDesk op-ed, she argued that the association’s concerns were misplaced and characterized the CLARITY Act as an important consumer-protection measure.
Bill Faces More Negotiations
The NSA’s shift to neutrality removes a significant law-enforcement opponent as the CLARITY Act approaches another round of Senate consideration.
The bill has struggled to advance after months of negotiations. The Senate deferred its final vote until September, leaving lawmakers with several outstanding issues to resolve, including an ethics provision Democrats want addressed before backing the legislation.
The House has said it plans to complete its final votes before the midterm elections once the Senate returns. Given the remaining hurdles and the limited legislative calendar, the bill is now unlikely to become law before the November election.
