Major County Sheriffs Shift to Neutral on CLARITY Act, Seek Changes to Blockchain Provision

TL;DR

• The Major County Sheriffs of America have shifted from opposing the CLARITY Act to a neutral position.
• MCSA is urging Congress to revise Section 604 to give state and local law enforcement a stronger role.
• The group says agencies need more funding, training, and forensic resources to tackle crypto-related crime.
• MCSA will continue working with lawmakers to strengthen the bill while supporting responsible digital asset innovation.

The Major County Sheriffs of America (MCSA) has changed its position on the Digital Asset Market Clarity (CLARITY) Act, moving from opposition to a neutral stance after further discussions over a key section of the legislation. While the group no longer opposes the bill, it is urging lawmakers to revise provisions tied to the Blockchain Regulatory Certainty Act (BRCA) before advancing the legislation.

In a letter dated July 3 to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, MCSA said ongoing conversations with lawmakers and the administration had clarified the intended implementation of Section 604. The organization added that its latest review found room to improve the bill while still encouraging responsible innovation in the digital asset sector.

Major County Sheriffs Call for Stronger Role for Law Enforcement

The sheriffs’ association said it remains concerned that state and local law enforcement agencies are not adequately represented in discussions surrounding Section 604. According to the letter, these agencies investigate the vast majority of crimes involving digital assets and should have a greater voice in shaping legislation, regulatory policy, and implementation efforts.

MCSA encouraged Congress to amend the CLARITY Act so that state and local law enforcement representatives are formally included in the Treasury Department’s advisory bodies or interagency working groups established under the legislation.

The organization also argued that any federal framework governing digital assets should be accompanied by funding and resources to help law enforcement agencies respond to increasingly sophisticated crypto-related crimes. It highlighted the need for training, forensic tools, investigative technology, and stronger partnerships to combat offenses involving fraud, ransomware, organized retail theft, child exploitation, and other illicit activities linked to digital assets.

Neutral Position Reflects Ongoing Dialogue

The latest letter marks a notable shift from MCSA’s earlier position. The organization said that discussions held after submitting its May 14 letter provided additional clarity on how Section 604 is expected to be interpreted and implemented.

Rather than opposing the bill outright, MCSA now says it looks forward to working with Congress and the administration to strengthen the legislation while ensuring investigators have the authority and resources needed to enforce the law effectively.

The group emphasized that responsible innovation and public safety should move forward together. It said a durable digital asset regulatory framework should encourage technological development while ensuring law enforcement agencies have a meaningful role in policy discussions and the practical tools required to investigate financial crimes involving blockchain technology.

Although MCSA has softened its stance, the letter makes clear that the organization still wants revisions before fully supporting the legislation. Its recommendations focus on expanding law enforcement participation in policymaking and ensuring agencies are equipped to address the growing use of digital assets in criminal investigations.

With the CLARITY Act continuing to move through Congress, the sheriffs’ updated position could shape further discussions around how lawmakers balance regulatory certainty for the crypto industry with the operational needs of law enforcement agencies.

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