The National Sheriffs' Association changed its position on the CLARITY Act to neutral on September 3, citing the legislation's complexity and unresolved details. The shift removes a prominent law enforcement objection before the bill's scheduled Senate vote.
In a letter addressed to Senate Majority Leader John Thune and Senate Minority Leader Charles Schumer, NSA President Sheriff Troy Wellman and Executive Director Justin Smith stated that the association would step back to allow lawmakers to continue developing a regulatory framework for digital asset markets.
DeFi Provisions at Center of Dispute
The association's earlier objections focused on provisions governing decentralized finance and noncustodial software developers. Law enforcement groups argued that Section 604 could create investigative gaps, while industry representatives maintained that the provision protects developers who do not control customer assets or transactions.
The group had intensified its warnings in a July 31 letter, arguing that proposed exemptions could weaken registration, know-your-customer, anti-money laundering, and sanctions requirements for certain DeFi participants. The NSA represents 3,081 sheriffs and approximately 10,000 public safety professionals.
Other law enforcement organizations have taken differing positions as lawmakers revised the legislation. The Fraternal Order of Police, with 382,000 members, endorsed the revised CLARITY Act after concluding that changes preserved criminal investigations. Major County Sheriffs of America also moved from opposition to neutral.
Senate Procedural Vote Scheduled
The CLARITY Act, formally titled the Digital Asset Market Clarity Act of 2025, would divide oversight of digital assets between the Securities and Exchange Commission and Commodity Futures Trading Commission. The House passed the measure 294-134 on July 17, 2025.
A cloture vote is scheduled for September 15 at 2:15 p.m. EDT. This procedural vote would limit debate on whether the Senate should begin considering the legislation and requires 60 votes to pass. A successful vote would allow the Senate to move toward formally considering the bill, though debate, amendments, and additional votes could follow before final passage.
