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U.S. "CLARITY Act" Progress Continues, County Sheriff's Organization Shifts to Neutral Stance
BlockBeats News, July 5 - The Major County Sheriffs of America (MCSA) has shifted its stance on the CLARITY Act from opposition to neutral. In a letter to Senate Banking Committee Chairman Tim Scott and Senator Elizabeth Warren, the organization stated that some of its concerns regarding Section 604 of the bill have been addressed. Previously, the MCSA had warned that the provision could weaken enforcement capabilities against illegal financial activities related to crypto assets.
Section 604 pertains to the "Blockchain Regulatory Certainty Act" and focuses on limiting liability determinations for developers of decentralized protocols. Supporters argue that developers should not bear intermediary liability for user actions; law enforcement agencies, however, had previously worried that this provision could create regulatory and enforcement "loopholes," impacting investigations into money laundering, ransomware, drugs, and terrorist financing.
Despite shifting to a neutral stance, the MCSA still calls for including local law enforcement agencies in related research and coordination mechanisms during subsequent revisions to enhance digital asset crime investigation capabilities.
Analysts believe that this change removes a key obstacle to advancing the CLARITY Act, increasing its feasibility of reaching a vote in the Senate. However, the banking industry's opposition to stablecoin yield products and DeFi regulation remains a major uncertainty.