Major County Sheriffs of America dropped its opposition to the CLARITY Act after talks with the Administration, but wants state and local agencies included in the regulatory framework.
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A national association of large-county sheriffs representing more than 130 million Americans has moved to neutral on the CLARITY Act, a crypto regulatory bill that has divided law enforcement and industry groups.
Major County Sheriffs of America (MCSA), whose 113 member offices each serve at least 500,000 residents, said in a July 3 letter to Senate Banking Committee leaders that it no longer opposes the Digital Asset Market Clarity Act (H.R. 3633). The shift followed discussions with the Administration about Section 604, a provision governing regulatory and enforcement requirements.
The group had raised concerns in a May 14 communication. After what it described as clarifications on how the Administration would interpret and implement that section, MCSA dropped its opposition without endorsing the bill.
Coinbase CEO Brian Armstrong noted the shift on social media. MCSA's letter itself stressed that the change was about enforcement capacity, not policy support.
The group wants Congress to amend H.R. 3633 so state and local agencies are included in a Treasury study under Section 309 and in any advisory or interagency bodies the act creates. Local offices handle most digital asset investigations, MCSA argued, and should have a seat at the table when regulatory and enforcement policy is written.
"We are dedicated to preserving the highest integrity in law enforcement and the elected Office of the Sheriff," the letter states. "Our membership represents over 130 million citizens."
The letter ties the policy debate directly to public safety. Criminal organizations increasingly use digital assets for narcotics trafficking, fraud, ransomware, child exploitation, organized retail theft, and terrorism financing, MCSA said.
"The legislation should also recognize that establishing a new federal framework must be accompanied by the resources necessary for state and local law enforcement to implement it effectively," the letter reads. "Congress should support the training, technology, forensic capabilities, and investigative resources needed to investigate increasingly sophisticated digital asset-enabled crime and ensure agencies can keep pace with rapidly evolving criminal threats."
MCSA said it will keep engaging Congress, the Administration, and stakeholders on refinements to H.R. 3633. The Senate faces a tight timeline to advance the bill before its August recess.
The neutral stance from a major law enforcement group removes one political obstacle for the CLARITY Act, though the resource demands MCSA outlined could become a sticking point in negotiations over the bill's final shape.
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