Blockchain Group Fights Sheriffs' Claim CLARITY Act Aids Crypto Crime

The fight centers on Section 10604, known separately as the Blockchain Regulatory Certainty Act. The sheriffs want lawmakers to narrow or remove the section because it protects non-custodial blockchain developers from being treated as money transmitters. The Blockchain Association argues software developers should not face financial-institution rules if they never take control of customer assets.

"The bill keeps a clear line between financial services and software development while still protecting consumers," Summer Mersinger, the group's executive director, said in the letter.

The timing is tight. Congress starts its summer recess Aug. 7, leaving lawmakers only days to act. The bill is stuck in the Senate. Thune has confirmed the Senate will not vote before the break, with priority going to judicial nominations and a Russia sanctions bill.

The delay is showing up in prediction markets. Kalshi puts the odds of the CLARITY Act becoming law in 2026 at roughly 36%, down from earlier levels. Traders expect a longer wait, and the legislative calendar offers no clear path forward before September at the earliest.