National Sheriffs’ Association Drops Opposition to Crypto Market Structure Bill
Quick Look
- The National Sheriffs’ Association withdrew its opposition to the CLARITY Act, a cryptocurrency market structure bill, citing congressional and administrative work on regulatory framework.
- The group now takes a neutral stance as the bill heads for a Senate vote later this month.
AI-generated summary
Why It Matters
The CLARITY Act passed the House in July 2025 and has faced hurdles in the Senate, with committees passing versions in 2026. Interest groups and lawmakers have raised concerns about stablecoin rewards, tokenized equities, and potential conflicts of interest involving President Trump and his family.
The National Sheriffs’ Association (NSA) has dropped its opposition to a cryptocurrency market structure bill scheduled for a vote later this month when the US Senate returns to session.
In a Thursday letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the US law enforcement group said that it was changing its position on the Digital Asset Market Clarity (CLARITY) Act to “neutral.” The NSA cited the “significant work undertaken by Congress, the Administration, and stakeholders to navigate the many legal, regulatory, and enforcement considerations involved” in addressing the bill.
“At this time, we believe the most appropriate course is to step back and allow the legislative process to proceed to establish a clear, effective, and much needed regulatory framework,” said NSA president Troy Wellman and CEO and executive director Justin Smith.
The NSA previously expressed opposition to provisions in the CLARITY Act, saying it had “significant concerns” about amendments to exempt crypto mixers from many registration requirements. According to the group, the provision could “[impair] law enforcement’s ability to trace transactions and digital assets, and recover victims’ money.”
“The CLARITY Act protects the crypto industry, not the public,” said Sheriff Jim Skinner in a July video from the NSA.
Related: Rushed CLARITY Act vote could set legislation back, Gallego warns
Passed by the US House of Representatives in July 2025, the CLARITY Act has faced several hurdles since it was sent to the Senate for consideration. Although the Senate agriculture and banking committees passed their versions of the bill in 2026, many interest groups and lawmakers continue to raise concerns about aspects of the legislation, including stablecoin rewards, tokenized equities and potential conflicts of interest from President Donald Trump and his family.
Before breaking in August, Thune filed a motion to hold a cloture vote on the bill on Sept. 15 after senators return from state work periods.
US regulators to move forward without CLARITY?
In August, Trump stood alongside the heads of the US Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) and several digital asset companies to push for passage of CLARITY. SEC Chair Paul Atkins and CFTC Chair Michael Selig — both nominated by Trump — have signaled that their agencies would address crypto regulation if Congress were unable to pass the market structure bill.
What to Watch
AI outlook — possibilities, not facts
The Senate will hold a cloture vote on the CLARITY Act on September 15 after senators return from state work periods.
Very likely · Within days
Open Questions
- Will the Senate vote on the CLARITY Act result in passage or further delays?
- How will regulators proceed if Congress fails to pass the market structure bill?
- What specific changes addressed the NSA’s concerns about crypto mixers and law enforcement capabilities?
