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U.S. law enforcement organizations take 'neutral' stance on CLARITY Act

2026-09-05 04:18:57
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The National Sheriff's Association changes its stance and remains neutral on the cryptocurrency market structure bill

The National Sheriff's Association (NSA) has withdrawn its opposition to a cryptocurrency market structure bill that is scheduled to be voted on when the U.S. Senate resumes later this month. In a letter to Senate Majority Leader John Thun and Minority Leader Chuck Schumer on Thursday, the U.S. law enforcement group said it had adjusted its position on the CLARITY Act to "neutrality."

The association noted that Congress, the government and stakeholders have done "a lot of work" to address the legal, regulatory and enforcement considerations involved in the bill. "At this point we believe the most appropriate course of action is to step back and let the legislative process move forward to create a clear, effective and much-needed regulatory framework," said Troy Wellman, president of the National Association of Chiefs of Police, and Justin Smith, executive director and CEO.

Previously, the National Sheriff's Association had opposed certain provisions of the CLARITY Act, saying it had "significant concerns" about amendments that would exempt cryptocurrency mixers from multiple registration requirements. The group believes the rules could "undermine law enforcement's ability to track transactions and digital assets and recover victim funds."

Sheriff Jim Skinner of the National Association of Chiefs of Police said in a July video: "The CLARITY Act protects the encryption industry, not the public."

It is reported that the CLARITY Act was passed by the U.S. House of Representatives in July 2025 and has faced many obstacles since it was submitted to the Senate for review. Although the Senate Agriculture and Banking Committees passed their respective versions of the bill in 2026, many interest groups and lawmakers have expressed concerns about certain aspects of the bill, including stablecoin rewards, tokenized stocks, and possible conflicts of interest for President Donald Trump and his family.

Before the early August recess, Thun filed a motion requiring senators to vote on the bill in closing debate on September 15 after returning from state periods.

Without the CLARITY Act, would U.S. regulators advance it on their own?

In August, Trump made an appearance with the heads of the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and senior executives of several digital asset companies to promote the passage of the CLARITY Act. SEC Chairman Paul Atkins, nominated by Trump, and CFTC Chairman Michael Selig both said that if Congress fails to pass the market structure bill, their agencies will address cryptocurrency regulation matters.

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