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Sheriff's group withdraws opposition to CLARITY Act ahead of key Senate vote

2026-09-05 16:22:53
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Key Points

The American Sheriff's Association (NSA) has given up its opposition to the CLARITY Act and adopted a neutral stance. Earlier this year, the association warned that the legislation could provide cover for cryptocurrency mixers to bypass anti-money laundering regulations. The Senate is scheduled to hold a procedural closing debate vote after resuming work on September 15. Democratic requirements for moral security remain a key point of disagreement. The final vote in the House is scheduled after the Senate returns, so the possibility of passing the bill before November is extremely low.

The American Sheriff's Association changes its stance on the CLARITY Act ahead of Senate vote

Semafor reports that after months of warning that the bill could make law enforcement more difficult, the American Sheriff's Association (NSA) has changed its stance on the CLARITY Act from opposition to neutrality. The shift in stance comes weeks before the U.S. Senate holds a key vote on legislation for a regulatory framework for cryptoassets.

NSA President Troy Wellman and Executive Director Justin Smith sent letters to Senate Majority Leader John Thune and Minority Leader Chuck Schumer on Thursday announcing their decision to "step back and let the legislative process continue." The group explained its shift in position citing the complexity of the bill itself and the continued efforts of lawmakers, government officials and various stakeholders.

The NSA was one of the most prominent representatives of many law enforcement agencies challenging the legislation. In May this year, the association strongly questioned a specific provision in the CLARITY Act, saying it would provide broad anti-money laundering regulatory exemptions for cryptocurrency mixing services, money mixers and decentralized financial platforms. The organization believes malicious actors may use software tools and artificial intelligence to transfer digital currency without supervision, thereby assisting in money laundering, financing terrorism and circumventing economic sanctions.

Turning Point

In June, White House officials held meetings with law enforcement agencies that challenged the bill. The discussions aim to address concerns about the bill's way to combat illegal financial activity. Summer Mersinger, CEO of the Blockchain Association, refuted the NSA's position in an editorial published in July, arguing that the CLARITY Act represented "the most important consumer protection measure in years."

As the NSA withdraws its active opposition, one of the bill's most prominent critics will stop attacking it before the upcoming September vote.

Residual obstacles

The CLARITY Act was passed by the U.S. House of Representatives in July 2025. However, his journey in the Senate has been more difficult. The Senate Agriculture and Banking Committees approved their respective versions of legislation in 2026. But multiple contentious issues remain unresolved, including differences over stablecoin reward mechanisms, tokenized securities, and potential conflicts of interest involving President Trump and his relatives.

Democratic lawmakers continue to press for key ethics clauses to be added before committing to support the measure. Senate Majority Leader Thune has filed a procedural motion to set a closing debate vote on September 15, coinciding with the senators 'return from their August recess.

The House announced that a final vote will be held before the midterm elections shortly after the Senate resumes. The tight timetable makes it almost impossible for the bill to become law before November.

In August, Trump joined the leadership of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to jointly advocate approval of the bill. The heads of both regulators said they were willing to advance crypto asset regulation through executive action if Congress failed to pass the legislation.

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