The National Sheriffs' Association (NSA) has dropped its opposition to the crypto Clarity Act, reversing its earlier warning that the proposed legislation could help criminals.

In a letter sent Thursday to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the association said it was changing its position to neutral, citing the complexity of the issue.

"Given the complexity of the legislation and the number of important details that remain under consideration, the NSA is changing its position on the Clarity Act to neutral," the letter from NSA President Sheriff Troy Wellman and Executive Director Justin Smith read.

"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," the association added.

JUST IN: Major U.S. law enforcement organization National Sheriffs' Association no longer opposes The Clarity Act "We believe the most appropriate course is to step back and allow the legislative process to proceed to establish a…much needed regulatory framework." pic.twitter.com/NBpKlrUsUj — Bitcoin Magazine (@BitcoinMagazine) September 4, 2026

The NSA, which represents sheriffs' offices across the United States, is one of the most prominent law enforcement voices to weigh in on the bill. Its earlier objection carried weight in a Senate debate where opponents have framed the legislation as a national security and illicit-finance risk, so the shift to neutral removes a notable talking point for critics ahead of an expected vote.

The NSA had previously warned that the bill could create regulatory and anti-money laundering loopholes by exempting certain crypto developers and infrastructure providers from money transmitter rules.

A number of lawmakers had hoped to vote on the Clarity Act in August. After a delay, a vote is now expected to go ahead this month. The bill would establish a framework for distinguishing between digital assets that are securities, commodities, or payment stablecoins — legislation the crypto industry has long called for. The industry argues that without such a framework, firms face uncertainty over which regulator — the Securities and Exchange Commission or the Commodity Futures Trading Commission — has jurisdiction over a given token, a dispute that has fueled enforcement actions and discouraged some firms from operating in the U.S.

Despite passing the House of Representatives last year with strong bipartisan support, the Clarity Act has been deadlocked for much of 2026. The banking lobby raised concerns over stablecoin yield, and some lawmakers have said improvements are needed on ethics questions.

An updated version of the bill was introduced in July that addressed some of those concerns, banning government officials and their families from issuing or promoting crypto.

Pro-crypto Senator Cynthia Lummis wrote on Friday that the "bipartisan bill" gives "law enforcement real tools to fight the illicit finance crimes hurting hard working Americans."

Major financial institutions, lawmakers, and companies have said they support the latest draft of the bill, but some Republicans have accused Democratic lawmakers of deliberately playing politics and holding the legislation back.

The timing of the NSA's letter — days before an expected Senate vote — adds to the list of institutional players publicly signaling their stance as the window for passing the bill this session narrows.

This post National Sheriffs' Association Drops Opposition to Clarity Act first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.