US Law Enforcement Group Withdraws Opposition to CLARITY Act as Legislation Stalls in Senate

Key Insights

• The Major County Sheriffs of America (MCSA) has announced it is adopting a neutral stance towards the legislation.
• Another US law enforcement group has also endorsed the Bill.
• Pro-crypto senator Gillibrand has renewed calls for stronger ethics laws in the rule as odds of

The Major County Sheriffs of America (MCSA) has dropped its opposition to the CLARITY Act, stating it will remain neutral. It stated that this follows discussions with the Administration and provides additional clarity on its major contentious issue.

The group, which represents sheriffs’ offices in counties that have at least 500,000 people, previously wrote a letter to the Senate on May 14. In that letter, it opposed Section 604 of the bill, also known as the Blockchain Regulatory Certainty Act.

Under this section, non-custodial developers are not subject to the money transmission rules if they do not hold customers’ funds. While the crypto community supports this, the law enforcement groups have pushed back, stating that it could enable illicit crypto activity.

Law Enforcement Groups Shift Position on CLARITY Act

However, the MCSA stated that it is now neutral on that section and looking forward to working with the Congress and Administration on improvements to the bill.

As part of that, it asked Congress to formalize the state and local role in the Treasury Study under Section 309. The organization also requested training and technology to improve its capabilities under the Act, stating that local agencies handle most digital asset crimes.

Interestingly, the National Organization of Black Law Enforcement Executives (NOBLE) has already endorsed the CLARITY Act. It is the first law enforcement group to do so.

According to NOBLE, the bill provisions give law enforcement new capabilities. It also addressed concerns from other law enforcement groups, noting that the CLARITY Act “does not alter the longstanding federal criminal authorities that investigators and prosecutors rely upon every day.”

CLARITY Act Still Facing Challenges as Odds of Passage Drop to 50%

The change in stance by law enforcement groups represents a significant development in efforts to pass the CLARITY Act. It removes concerns from Senators about law enforcement’s position on the bill.

Still, that might not be enough to get it across the line, especially as other contentious issues remain unresolved. The most crucial issue is ethics and efforts to prevent elected officials and their families from profiting off crypto.

One of the major Democratic senators backing the bill, Kirsten Gillibrand, has been calling for a ban on elected officials and their sponsors issuing and promoting crypto tokens.

She intensified her call after the recent Bloomberg report showing that President Donald Trump made over $1.2 billion from crypto in 2025. Gillibrand, in a statement, wants the ban to extend to memecoins.

“This is a commonsense requirement that should get broad bipartisan support—public officials and their spouses should not be issuing meme coins,” she said.

With the August recess fast approaching and pending issues still unresolved, many experts now believe the odds of the CLARITY Act passing have thinned. Galaxy Digital researchers cut the odds of its passage this year to 50%, noting the short timeline.

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