Sheriffs Group Eases Opposition To CLARITY Act, Clearing Path For Senate Vote

A major law enforcement organization has softened its stance on the CLARITY Act, removing one of the bigger obstacles standing in the way of the crypto market structure bill’s passage through the Senate.

Sheriffs Group Moves To Neutral

The Major County Sheriffs of America told Senate Banking Committee chair Tim Scott and Senator Elizabeth Warren in a letter that it now considers itself neutral on the bill, after previously opposing it. The shift came once concerns raised in a May letter about Section 604 were addressed.

That section, tied to the Blockchain Regulatory Certainty Act, aims to shield developers from liability for illegal activity carried out by users on decentralized platforms. The group had worried it could open a loophole making crypto crime harder to investigate.

Bill Still Faces Banking Industry Pushback

The CLARITY Act has bipartisan backing but has stalled in the Senate largely due to banking groups opposed to yield-bearing stablecoins, which they argue could pull significant deposits out of traditional banks. The bill cleared the Senate Banking Committee in May along mostly party lines and has awaited a full floor vote since. Supporters are pushing for passage this month, aiming to get it signed before the November midterms.

Sheriffs Still Want Changes

The group is asking lawmakers to amend Section 309 to involve state law enforcement in Treasury Department studies on decentralized finance risks. Its president argued local agencies need better tools and resources to investigate crimes involving fraud, trafficking, ransomware and other illicit activity tied to digital assets.