Key Points

• The National Sheriffs’ Association has withdrawn its opposition to the CLARITY Act and moved to a neutral position ahead of a key Senate vote.
• The group previously warned that provisions concerning crypto mixers could weaken law enforcement’s ability to trace digital assets and recover victims’ funds.
• The Senate is expected to consider the legislation later this month, while the SEC and CFTC have indicated they could advance aspects of crypto regulation even without congressional action.

National Sheriffs’ Association Withdraws CLARITY Act Opposition

The National Sheriffs’ Association (NSA) has changed its position on the US cryptocurrency market structure legislation, removing one source of law enforcement opposition as the Senate prepares to consider the bill.

In a Thursday letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the organization said it would now remain “neutral” on the Digital Asset Market Clarity (CLARITY) Act.

The NSA attributed the change to work by Congress, the administration and other stakeholders addressing the legal, regulatory and enforcement issues surrounding the legislation.

The organization said it would now step back and allow the legislative process to determine the framework for digital asset regulation.

The shift is notable because the NSA had previously raised significant objections to parts of the bill, particularly provisions involving cryptocurrency mixers.

Crypto Mixer Provisions Were a Major Concern

The NSA’s earlier opposition focused on provisions that could exempt certain crypto mixers from registration requirements.

The organization argued that these provisions could make it more difficult for law enforcement agencies to trace cryptocurrency transactions, identify digital assets and recover funds lost by victims.

The concerns reflected a broader debate surrounding privacy-enhancing technologies in cryptocurrency. While mixers can provide legitimate privacy benefits, law enforcement agencies have also focused on their potential use in obscuring the movement of illicit funds.

The NSA had previously taken a strong public position against the legislation, with one sheriff describing the CLARITY Act as legislation that protected the crypto industry rather than the public.

Its decision to move to neutral therefore represents a meaningful change in the political landscape surrounding the bill.

CLARITY Act Faces Senate Hurdles

The CLARITY Act passed the US House of Representatives in July 2025 and has subsequently faced several challenges in the Senate.

The Senate Agriculture and Banking committees approved their respective versions of the legislation in 2026, but disagreements remain over several provisions.

Among the issues under discussion are stablecoin rewards, tokenized equities and potential conflicts of interest involving President Donald Trump and his family.

Thune has filed a motion for a cloture vote scheduled for Sept. 15, when senators return following their state work periods.

The vote could become an important test of whether lawmakers can overcome the remaining disagreements and advance comprehensive cryptocurrency market-structure legislation.

Regulators Could Act Without Congressional Legislation

The future of the CLARITY Act also has implications for the US regulatory agencies overseeing digital assets.

In August, Trump publicly supported passage of the legislation alongside the leadership of the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) and representatives from the digital asset industry.

SEC Chair Paul Atkins and CFTC Chair Michael Selig have separately indicated that their agencies could continue developing cryptocurrency regulations if Congress fails to pass the market-structure bill.

That possibility creates an additional incentive for lawmakers to establish a legislative framework, while also suggesting that regulatory development may continue regardless of the Senate’s ultimate decision.

Outlook

The NSA’s move to neutrality removes one layer of opposition to the CLARITY Act, but it does not resolve the broader political and policy disputes surrounding the legislation. The upcoming Senate vote will be closely watched as lawmakers weigh consumer protection, law enforcement access, stablecoin policy and market structure. Even if congressional action stalls, signals from the SEC and CFTC indicate that US cryptocurrency regulation is likely to continue evolving through agency-level initiatives.