The National Sheriffs’ Association has told lawmakers that it will no longer fight the CLARITY Act.
After months of opposition, the group is now shifting to a neutral stance and clearing a hurdle for crypto’s top legislative priority just weeks before a scheduled Senate vote.
Will the CLARITY Act pass before the upcoming Senate vote?
The National Sheriffs’ Association president, Sheriff Troy Wellman, and executive director and CEO Justin Smith sent a signed letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, explaining that it would no longer oppose the CLARITY Act.
The change in approach was reportedly due to “the complexity of the legislation and the number of important details that remain under consideration.” Now, the NSA will maintain a neutral position on the issue.
Aside from the NSA, other law enforcement bodies, including national police and federal groups, already backed the bill’s control-based approach. The NSA’s refusal was due to its argument that the measure would weaken efforts to prosecute illicit finance.
Due to that insistence, Democrats such as Nevada’s Catherine Cortez Masto voted against advancing the CLARITY Act out of the Senate Banking Committee.
Masto entered letters from six groups into the record, among them the National Sheriffs’ Association, the National District Attorneys Association, and the International Association of Chiefs of Police.
They all argued that the draft failed to answer their concerns. With the NSA’s new position, that pressure point loses some force.
What is section 604?
One of the biggest issues in the way of passing the CLARITY Act is a part called Section 604. This section protects software developers from being treated as if they control user funds just for writing code.
Supporters of this section, like Senator Ron Wyden (D-OR), say this protection is needed to stop developers from moving overseas because of unclear laws. He referred to cases like the Tornado Cash developer to show the problem.
The Blockchain Association, in an eight-page letter to Thune and Schumer on August 3, argued the provision clearly separates people who control customer assets from developers who supply neutral tools, and said it would not apply to anyone with control over user funds or the ability to transact on their behalf.
However, critics of the section worry the protection is too broad, and it could let crypto mixers and tumblers escape anti-money-laundering rules. Prosecutors and police groups have also argued that it would make it harder to track money tied to fraud, ransomware, and sanctions evasion.
Another issue is how to limit a sitting president’s ability to profit from digital assets. More than $1.4 billion in crypto-linked income was tied to President Donald Trump’s family ventures in 2025, including World Liberty Financial and the Trump meme coin. Lawmakers argue that the bill’s ethics language is not good enough.
A cloture vote is set for September 15 and needs 60 votes. Republicans hold 53 seats, so at least seven Democrats must cross over.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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