Sheriffs’ group shifts stance on crypto regulation bill
The National Sheriffs’ Association (NSA) has moved from opposing a major cryptocurrency law to taking a neutral position. The US law enforcement group wrote to Senate leaders on Thursday, saying it will let the legislative process move forward.
The vote on the Digital Asset Market Clarity (CLARITY) Act is expected later this month when senators return from summer breaks. The NSA’s earlier public opposition had focused on consumer protection concerns. Its decision to step back removes a significant roadblock for the bill.
Key concerns over crypto mixer rules
In a letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the NSA said it recognized the work done by Congress and stakeholders to handle legal and enforcement issues. NSA President Troy Wellman and CEO Justin Smith stated that stepping back was the most appropriate course to help establish a clear regulatory framework.
The group previously voiced strong opposition to provisions in the CLARITY Act that would exempt crypto mixers from many registration requirements. Crypto mixers are services that blend transactions to obscure where digital assets came from or went. The NSA argued these rules could make it harder for law enforcement to trace transactions and recover money for victims.
“The CLARITY Act protects the crypto industry, not the public,” Sheriff Jim Skinner said in a video posted in July.
Regulators ready to act if bill stalls
The CLARITY Act passed the House of Representatives in July 2025. It has faced several hurdles in the Senate, where agriculture and banking committees have approved their own versions of the bill in 2026. Concerns remain among various groups about parts of the legislation, including stablecoin rewards and tokenized equities.
Senate Majority Leader John Thune filed a motion in August for a cloture vote on September 15 to push the bill forward. Meanwhile, President Donald Trump has publicly supported the legislation alongside regulators. SEC Chair Paul Atkins and CFTC Chair Michael Selig have signaled that their agencies would move ahead with crypto regulation even if Congress fails to pass the bill.
- The National Sheriffs’ Association changed its position on the CLARITY Act from opposition to neutral.
- The group previously warned that rules around crypto mixers could hurt law enforcement investigations.
- A Senate cloture vote is scheduled for September 15 when legislators return.
- regulators say they can proceed with crypto rules if the bill does not pass.
What happens next in Congress
The Senate is set to return from its summer recess later in September. Thune has moved to hold a procedural vote, known as cloture, on September 15 to limit debate and move toward a final vote on the bill. If the bill passes the Senate, it would then need to resolve differences between the House and Senate versions before becoming law.
Why this matters for crypto rules
The NSA’s shift is significant because it was one of the few major law enforcement voices publicly opposing the bill. Their earlier concerns centered on how the legislation handled privacy tools used in cryptocurrency transactions. By moving to neutral, the group is no longer actively blocking the bill on consumer safety grounds.
The outcome of the CLARITY Act will determine the basic rules for how digital assets are regulated in the United States. A clear framework could change how companies operate and how investigators track illicit activity on blockchains, which are public digital records of transactions.
What is confirmed
The NSA sent a letter to Senate leadership stating it is neutral on the CLARITY Act. A cloture vote is scheduled for September 15. The bill previously passed the House in July 2025.
What is still unclear
It is not yet confirmed whether the Senate will successfully pass the CLARITY Act or if regulators will ultimately create their own separate rules. The final text of the bill still faces debate over specific provisions.