Major County Sheriffs Group Drops Opposition to CLARITY Act, Boosting Senate Prospects

The Major County Sheriffs of America, or MCSA, has withdrawn its opposition to the CLARITY Act, a US digital-asset market structure bill.

Cointelegraph reported on July 4 that MCSA told Senate Banking Committee Chairman Tim Scott and Senator Elizabeth Warren in a letter that it had changed its position on the CLARITY Act from opposition to neutral. The group said some of its concerns over Section 604, raised in a May 14 letter, had been partly resolved.

Section 604 relates to the Blockchain Regulatory Certainty Act, which would shield developers from legal liability for illegal conduct by users of decentralized platforms. MCSA had argued that the provision could create a loophole for criminals to evade law enforcement and make digital-asset crime investigations more difficult.

Some in the industry said MCSA's reversal could improve the bill's chances of passage. Digital-asset influencer Mark Chadwick said one of the biggest obstacles to Senate passage of the CLARITY Act had been removed and that the path forward for the bill was now clearer.

MCSA still says some provisions need changes. It has argued that Section 309, which would require the Treasury Department to study decentralized finance and illicit finance risks, should also include state law enforcement agencies. MCSA President Bob Gualtieri urged Congress to provide the training, technology and resources needed by state and local law enforcement agencies investigating crimes involving digital assets, including fraud, drug trafficking, ransomware, child exploitation and terrorism financing.

The CLARITY Act has bipartisan support, but a full Senate vote has been delayed. Disputes over stablecoin interest payments and ethics provisions remain sticking points. The bill passed the Senate Banking Committee in May and is awaiting a floor vote. Congress is seeking a vote this month, with the goal of Senate passage before the November midterm elections.