Sheriffs’ Association shifts to neutral on CLARITY Act ahead of Senate vote

In a September 3 letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, NSA President Sheriff Troy Wellman and Executive Director Justin Smith stated that the organization will step back to allow the legislative process to unfold. The group had previously campaigned against Section 604 of the bill, arguing that the provision created a potential loophole for money laundering by exempting non-custodial software developers from anti-money laundering requirements.

While the shift in position does not constitute an endorsement, it signals a strategic pivot toward negotiation. Law enforcement had previously been divided on the bill; the National Organization of Black Law Enforcement Executives supported the measure in July, while the NSA and the International Association of Chiefs of Police warned that the bill’s language on decentralized services could hinder investigations into terrorism financing and sanctions evasion. The bill, which aims to clarify the jurisdictional divide between the SEC and the CFTC, now heads toward a high-stakes vote with a significantly shortened congressional calendar. With House leaders canceling voting sessions scheduled for late September, the path to passing the legislation before the upcoming midterm elections remains narrow.