National Sheriffs' Association Drops Opposition To CLARITY Act

The National Sheriffs’ Association this week dropped its opposition to the crypto Clarity Act, after having previously warned that the proposed bill could help criminals. 

Writing Thursday to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the association said it was changing its stance to neutral given how complex the issue is. 

A number of lawmakers were hoping to vote on the Clarity Act in August. After a delay, a vote will now go ahead this month. The bill will establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins — legislation that the crypto industry has long called for. 

“Given the complexity of the legislation and the number of important details that remain under consideration, the NSA is changing its position on the Clarity Act to neutral,” the letter from NSA President Sheriff Troy Wellman and Executive Director Justin Smith read. 

“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.”

The NSA had previously warned that the bill could create regulatory and anti-money laundering loopholes by exempting certain crypto developers and infrastructure providers from money transmitter rules.