The Major County Sheriffs of America has withdrawn its opposition to the decentralized finance provision in the CLARITY Act, easing one of the main law enforcement concerns surrounding the proposed U.S. crypto market structure bill.
Summary
- Major County Sheriffs of America has dropped its opposition to the CLARITY Act’s DeFi provision and adopted a neutral stance.
- The group proposed amendments giving state and local law enforcement a formal role in Treasury studies and advisory bodies.
- Senate momentum has improved, with updated timelines and rising passage odds boosting expectations for the CLARITY Act.
According to a letter sent by the Major County Sheriffs of America (MCSA) to Senate Banking Committee Chair Tim Scott and Ranking Member Elizabeth Warren, the organization has changed its position from opposing the Blockchain Regulatory Certainty Act provision to taking a neutral stance after conducting a continued review of the legislation. The change comes as lawmakers prepare for the next stage of Senate discussions on the bill.
The Blockchain Regulatory Certainty Act section of the CLARITY Act would protect software developers and infrastructure providers from legal responsibility for crimes committed by users of decentralized platforms, provided they do not control customer funds.
Law enforcement organizations had argued that the language could make investigations into illicit crypto activity more difficult.
Law enforcement concerns narrow as amendments remain on the table
While ending its formal opposition, the MCSA did not give unconditional support to the provision. In its letter, the organization said continued discussions with the Trump administration had provided additional clarity on how officials expect the DeFi language to be interpreted and implemented if the legislation becomes law.
Alongside its updated position, the sheriffs’ association proposed several changes. It asked Congress to give state and local law enforcement agencies a formal role in the Treasury study required under Section 309 of the CLARITY Act and in any advisory groups created under the legislation.
The MCSA argued that local and state agencies investigate most cryptocurrency-related crimes and should therefore help shape future legislative, regulatory, and policy recommendations.
It also urged lawmakers to recognize that a new federal regulatory framework should be matched with funding and operational resources needed by state and local authorities responsible for enforcing the rules.
Earlier this week, the CLARITY Act also secured backing from the National Organization of Black Law Enforcement Executives (NOBLE). As previously reported by crypto.news, the organization said the legislation would provide law enforcement with additional investigative capabilities while preserving existing criminal enforcement powers.
Senate timeline points to renewed momentum
Meanwhile, political attention has shifted back to the Senate’s legislative schedule after Senator Bill Hagerty outlined a revised timeline for the bill. Reports citing Hagerty indicate that the Senate is expected to release the final text of the CLARITY Act this weekend before debate resumes after lawmakers return from the July recess.
The updated schedule replaces earlier expectations that President Donald Trump could sign the legislation by July 4. Instead, Hagerty has indicated that Senate floor action is more likely after Congress reconvenes on July 13.
Support for the legislation has continued to build despite the delay. According to Bloomberg Intelligence, the probability of the CLARITY Act passing during July has increased to around 60%, suggesting improving expectations for a federal digital asset market structure framework.
Prediction market participants have also turned more optimistic. According to Polymarket, the odds of President Trump signing the CLARITY Act into law before the end of the year have climbed back above 50% after falling earlier in the week.
Still, not every issue has been resolved. Senator Kirsten Gillibrand has continued to argue that lawmakers should prohibit members of Congress and their spouses from issuing or promoting crypto assets before advancing major digital asset legislation, keeping ethics provisions among the remaining points of debate as the Senate prepares to take up the bill.
