The National Sheriffs' Association has dropped its opposition to the CLARITY Act ahead of a planned September 15 Senate vote, citing the bill's complexity and remaining unresolved details.

Prosecutors' groups continue to oppose protections for noncustodial developers and are seeking stronger tools against illicit crypto activity.

The CLARITY Act remains headed for a September 15 Senate vote, with several policy issues still unresolved ahead of consideration. The bill is part of Congress's effort to establish a market structure framework for digital assets, dividing oversight responsibilities between the SEC and CFTC and defining when a digital asset is a security or a commodity. The House passed its version of the legislation in July, leaving the Senate and a final House vote as the remaining steps before the bill could reach the president's desk.

On Thursday, the group shifted its position to neutral. The change followed discussions involving Congress, the administration and law enforcement groups over concerns surrounding crypto enforcement provisions.

Sheriffs Change Their Position on the Bill

NSA President Sheriff Troy Wellman and Executive Director Justin Smith outlined the change in a letter to Senate leaders John Thune and Chuck Schumer. The association said the legislation addresses a complex policy area requiring a regulatory framework, and it acknowledged the work done by Congress, the administration and stakeholders.

The NSA previously held a much stronger position against the measure. A May letter warned that Section 604 could broadly exempt mixers, tumblers and DeFi platforms. The group also raised concerns about digital assets being used for money laundering, terrorism financing and sanctions evasion. Those concerns led to a White House meeting with law enforcement organizations during the summer.

Prosecutors Maintain Their Objections

The NSA's shift leaves prosecutors' groups opposed to specific protections in the bill. The National District Attorneys Association and the National Association of Assistant U.S. Attorneys continue to seek narrower protections.

Both groups want changes involving noncustodial software developers under the Blockchain Regulatory Clarity Act provisions. They also want prosecutors to have greater ability to pursue developers involved in knowingly moving illicit funds.

Meanwhile, the White House, Treasury, Congress and the crypto industry have opposed those changes. Democratic Sen. Catherine Cortez Masto supported the prosecutors' position in a July letter and, according to the provided information, has not publicly changed that position. The Blockchain Association's Summer Mersinger previously defended the legislation against the NSA's objections.

CLARITY Act Heads Toward September Vote

The Senate postponed its consideration of the CLARITY Act until September after months of negotiations. Several issues remain unresolved, including an ethics provision sought by Democrats.

The NSA said its neutral position allows the legislative process to continue, and the association thanked Congress and the administration for engaging with local law enforcement.

Meanwhile, the House plans to hold final votes after the Senate returns. Those votes are expected before the midterm election, preventing the legislation from becoming law before November.