U.S. law enforcement organizations turn neutral on CLARITY Act

Representative organizations of the U.S. law enforcement community turned neutral on the Digital Asset Market Clarification Act

The American Sheriff's Association (NSA) has withdrawn its previous opposition to the Digital Asset Market Clarification Act. In a letter on Thursday, the association said its attitude had now been adjusted to "neutral." The development comes as Congress resumes later this month and the Senate may vote on the bill.

In a letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the NSA noted that the legislative process is complex and that lawmakers, the government, and stakeholders have done a lot of work to address "legal, regulatory and enforcement considerations" associated with the bill. NSA leadership said the organization believes it is more constructive to keep the legislative process moving forward than to maintain opposition as Congress seeks to establish a clearer digital asset regulatory structure.

Core Points

• The NSA's position on the CLARITY Act has changed from opposition to "neutrality", which shows that resistance to the bill's advancement has decreased.
• The association's previous concerns focused on amendments that would allow crypto mixers to be exempted from multiple registration requirements.
• Since the bill was passed by the House in July 2025, it has encountered multiple obstacles in the Senate, including slow progress at the committee level and ongoing debate between lawmakers and stakeholders.
• Senate leaders have taken procedural steps to push for a vote, and Thun has filed a cloture motion after senators return to work to limit lengthy debate and promote legislation.

From Opposition to Neutrality: Shift in NSA Position

NSA Chairman Troy Wellman and CEO and Executive Director Justin Smith elaborated on the association's latest position. At this stage, they said, the association no longer actively promotes opposition measures, but instead advocates "taking a step back" and allowing Congress to proceed to establish a "clear, effective and urgently needed regulatory framework."

This change marks a major adjustment in NSA's previous messaging. Previously, the group had expressed "serious concerns" about specific provisions of the CLARITY Act, particularly amendments related to crypto-mixers and their impact on registration obligations.

NSA's previous objection: Immunity for crypto-mixers

According to previous NSA letters, the association's objection stems from its belief that certain provisions may restrict law enforcement tools used to track illegal activities and recover victim funds. In that position, the NSA argued that allowing crypto-mixers to exempt many registration requirements could "undermine law enforcement's ability to track transactions and digital assets, as well as recover victim funds."

In July, Sheriff Jim Skinner criticized the bill's positioning in a video released by the NSA, saying: "The CLARITY Act protects the cryptocurrency industry, not the public." Previous reports and Senate Banking Committee communications cited by the NSA suggest language related to currency mixers is at the core of the controversy. [TAG

Although Thursday's letter did not elaborate on which provisions had been resolved or how the organization viewed the current draft, the shift to neutrality suggested that the NSA was at least willing to allow continued review rather than maintaining active resistance.

The CLARITY Act's path in Congress remains controversial

The CLARITY Act was passed by the U.S. House of Representatives in July 2025 and subsequently encountered obstacles when it was introduced to the Senate. Although Senate committees such as the Agriculture and Banking Committees passed versions of the bill in 2026, the measure still faces opposition and uncertainty from multiple groups and lawmakers.

The debate over the legislation reportedly not only touched on enforcement logistics, but also included stablecoin-related rewards, tokenized stocks and concerns about potential conflicts of interest involving President Donald Trump and his family. These thorny issues prevented the bill from reaching a final unified result in the Senate even after the committee made progress.

As Congress nears its resumption, procedural actions also demonstrate an effort to bring the bill before the full house for discussion. According to reports, before the recess, Thun had filed a motion to plan a vote on closing debate after senators return from state periods on September 15-an action usually designed to limit extended debate and push legislation forward.

Regulators say action may be taken even without legislation

While the CLARITY Act awaits final passage by the Senate, U.S. regulators say cryptocurrency regulation may not wait indefinitely for congressional action. Previous reports pointed out that Trump had publicly called for passage of the bill and promoted it with the heads of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) and representatives of digital asset companies.

According to early reports, SEC Chairman Paul Atkins, nominated by Trump, and CFTC Chairman Michael Selig, said that if Congress fails to pass a market structure bill, their agencies will continue to work to address cryptocurrency regulation issues.

This is crucial for market participants because it changes expectations of timing and certainty. The NSA's shift in position reduced a strong voice of opposition, but did not eliminate other policy debates surrounding stablecoin rewards, tokenized assets and broader governance issues. At the same time, regulators 'willingness to continue to act without the CLARITY Act may mean the industry will face parallel developments: legislative negotiations in the Senate are synchronized with agency rulemaking and enforcement directions.

As the Senate agenda becomes clearer, readers should pay close attention to whether the bill's most controversial provisions-particularly those related to enforcement and registration-change between the committee text and the final text submitted for vote, and whether more stakeholders follow the NSA and change positions before the Senate moves forward.