National Sheriffs' Association Shifts to 'Neutral' on CLARITY Act Ahead of Senate Vote
Key Takeaways
- •The National Sheriffs' Association changed its position on the CLARITY Act from opposition to neutral in a letter to Senate leaders.
- •The NSA's earlier opposition centered on amendments that would exempt crypto mixers from registration requirements, which it said could impair tracing of illicit funds and recovery of victim money.
- •The CLARITY Act passed the House in July 2025 and would divide digital asset oversight primarily between the SEC and CFTC.
- •Senate Majority Leader Thune filed for a cloture vote on Sept. 15, which would require 60 votes and bipartisan support to advance the bill.
- •SEC Chair Paul Atkins and CFTC Chair Michael Selig have signaled their agencies would address crypto regulation if Congress fails to pass the bill.
The National Sheriffs' Association (NSA) has withdrawn its opposition to a cryptocurrency market structure bill that is scheduled for a vote later this month when the US Senate returns to session.
In a letter sent Thursday to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the US law enforcement group announced it was changing its position on the Digital Asset Market Clarity (CLARITY) Act to "neutral." The NSA cited the "significant work undertaken by Congress, the Administration, and stakeholders to navigate the many legal, regulatory, and enforcement considerations involved" in addressing the bill.
"At this time, we believe the most appropriate course is to step back and allow the legislative process to proceed to establish a clear, effective, and much needed regulatory framework," said NSA president Troy Wellman and CEO and executive director Justin Smith (letter to the Senate Banking Committee).
The NSA had previously opposed provisions of the CLARITY Act, stating it had "significant concerns" about amendments that would exempt crypto mixers from many registration requirements. Mixers, also known as tumblers, pool and redistribute funds to obscure the trail of transactions on public blockchains, which is why law enforcement groups have long viewed them as a tool used in laundering illicit proceeds. According to the group, such a provision could "[impair] law enforcement's ability to trace transactions and digital assets, and recover victims' money."
"The CLARITY Act protects the crypto industry, not the public," said Sheriff Jim Skinner in a July video released by the NSA (video).
Related: Rushed CLARITY Act vote could set legislation back, Gallego warns
A bumpy road through the Senate
The CLARITY Act, which would establish a comprehensive regulatory framework dividing oversight of digital assets primarily between the SEC and CFTC, passed the US House of Representatives in July 2025 but has faced several hurdles since being sent to the Senate for consideration. Although the Senate agriculture and banking committees passed their own versions of the bill in 2026, many interest groups and lawmakers continue to raise concerns about aspects of the legislation, including stablecoin rewards, tokenized equities, and potential conflicts of interest involving President Donald Trump and his family.
Before the August recess, Thune filed a motion to hold a cloture vote on the bill on Sept. 15, after senators return from their state work periods. A successful cloture vote would limit debate and clear the way for final Senate passage, but it typically requires 60 votes, meaning some bipartisan support is needed.
US regulators to move forward without CLARITY?
In August, Trump appeared alongside the heads of the US Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and several digital asset companies to push for passage of CLARITY. SEC Chair Paul Atkins and CFTC Chair Michael Selig — both nominated by Trump — have signaled that their agencies would address crypto regulation if Congress were unable to pass the market structure bill.
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