Blockchain Association counters sheriff claims on Clarity Act

The Blockchain Association pointed to the bill’s explicit preservation of oversight authority for FinCEN and the Treasury’s Office of Foreign Assets Control. Multiple law enforcement groups support the legislation, including the Fraternal Order of Police and a coalition of 160 former national security officials. The Major County Sheriffs of America has shifted to a neutral position on the bill.

The CLARITY Act cleared a significant hurdle in the Senate Banking Committee on May 14, passing 15-9 in a bipartisan vote. The bill is now headed toward a potential Senate floor vote in August 2026, though lawmakers are still working through provisions on ethics requirements and the preservation of state regulatory authority.

The National Sheriffs’ Association’s push reflects a broader pattern. Law enforcement groups have argued for broader regulatory coverage of crypto, saying exemptions for DeFi and self-hosted wallets make it harder to trace illicit funds. The CLARITY Act targets active intermediaries that engage in significant transactional roles, requiring them to comply with anti-money laundering rules while exempting basic software and infrastructure that do not handle financial transactions. The CLARITY Act delay risks US crypto lead, Haridopolos warns remains a live concern as the legislative calendar tightens.