Major County Sheriffs of America eases CLARITY Act opposition as Senate crypto bill advances

Traders Union
All News
Crypto
CLARITY Act Senate momentum

Highlights

Major County Sheriffs of America shifted from opposing to a neutral stance on the CLARITY Act after concerns about Section 604 were addressed.
Senate passage of the CLARITY Act faces delays due to banking groups' opposition to stablecoin yield, citing risks to trillions in traditional bank deposits.
Supporters aim for a Senate vote on the CLARITY Act before November midterm elections, viewing law enforcement neutrality as crucial to its prospects.

Law enforcement stance shifts on bill language

As first reported by Cointelegraph, citing Eleanor Terrett, the Major County Sheriffs of America told U.S. Senate Banking Committee Chair Tim Scott and Senator Elizabeth Warren on Friday that it no longer opposes the CLARITY Act and now considers its position neutral.

The group says some concerns raised in a May 14 letter about Section 604 of the bill have been addressed. That section relates to the Blockchain Regulatory Certainty Act, which seeks to protect developers from liability for illicit activity carried out by users on decentralized platforms.

MCSA had argued that the provision could create a loophole for criminals and make crypto-related investigations harder for law enforcement. The organization still says it wants changes to the legislation, including adding state law enforcement to Section 309, which requires the Treasury Department to study decentralized finance and illicit finance risks.

Senate timetable and industry implications

The legislation has bipartisan support, but its progress in the Senate remains slowed by banking groups that want restrictions on stablecoin yield. Those groups argue that yield-bearing stablecoin products function like unregulated deposits and could pull trillions of dollars out of the traditional banking system.

The CLARITY Act has awaited a full Senate vote since May, when the Senate Banking Committee approved it largely along party lines. Supporters are pressing for a vote this month so the measure can pass and be signed into law before the November U.S. midterm elections.

Crypto investor Mark Chadwick calls the sheriffs group's earlier opposition one of the biggest barriers to Senate passage. MCSA President Bob Gualtieri says Congress should provide training, technology and resources to help authorities investigate digital asset activity linked to fraud, narcotics trafficking, ransomware, child exploitation and terrorism financing.

Our earlier report on tokenization and blockchain settlement rails explained how major financial institutions are moving traditional assets onto blockchain to speed up settlement and reduce back-office reconciliation costs. It highlighted examples such as JPMorgan’s Kinexys processing large on-chain volumes, DTCC’s plan to tokenize U.S. Treasuries, and regulatory signals that could accelerate mainstream adoption—context that underscores why legislation like the CLARITY Act matters for the industry’s next phase.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.