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CLARITY Act Scores 2 Key Law Enforcement Wins as Opposition Softens
The CLARITY Act gained fresh momentum after the National Organization of Black Law Enforcement Executives endorsed the bill and Major County Sheriffs of America shifted to neutral, marking two notable law enforcement developments for digital asset legislation.
Key Takeaways
Why Is the CLARITY Act’s Momentum Building?
The CLARITY Act gained momentum after the National Organization of Black Law Enforcement Executives (NOBLE) formally endorsed the bill. NOBLE says it has nearly 60 chapters and represents more than 3,000 members worldwide, including chief executives and command-level law enforcement officials.
Crypto advocacy group “Stand With Crypto,” which says it represents more than 2.6 million crypto supporters across the United States, noted on X July 6:
In its July 1 letter to Senate leaders John Thune (R-SD) and Chuck Schumer (D-NY), NOBLE said the bill contains several provisions that would provide law enforcement with meaningful new capabilities while preserving longstanding criminal enforcement authorities. It cited expanded regulatory obligations, enhanced digital asset forfeiture authorities, new transparency expectations, and oversight requirements for digital asset kiosks.
NOBLE also said the legislation does not alter the longstanding federal criminal authorities that investigators and prosecutors rely upon every day, including money laundering, unlicensed money transmitting, conspiracy, aiding and abetting, and sanctions enforcement statutes. The group concluded by formally endorsing the CLARITY Act.
Could MCSA’s Neutral Shift Clear More Resistance?
The second development came from Major County Sheriffs of America (MCSA), which moved to a neutral position after further discussions with Senate Banking leaders. MCSA describes itself as an association of the largest sheriff’s offices in the country, serving more than 130 million citizens. Its members include sheriff’s offices serving counties with populations of 400,000 or more and employing at least 700 personnel.
Stand With Crypto detailed:
In a July 3 letter to Senate Banking Committee Chairman Tim Scott (R-SC) and ranking member Elizabeth Warren (D-MA), MCSA said continued review and discussions around Section 604 clarified how the administration interprets and plans to implement the legislation.
Section 604 relates to the Blockchain Regulatory Certainty Act, which addresses liability protections for certain blockchain developers and service providers. MCSA added that there is still room to strengthen the bill to support both responsible innovation and the needs of state and local law enforcement.
Following its reassessment, MCSA withdrew its opposition and adopted a neutral stance. The shift removes the group from active opposition while keeping it engaged in discussions on potential amendments. MCSA emphasized the need for targeted improvements to better equip law enforcement to address illicit digital asset activity.
What Would Confirm the Bullish Read?
Stand With Crypto framed the updates as momentum, saying:
“Law enforcement voices are engaging constructively on digital asset legislation, and the first major endorsement is on the books,” the group added.
Together, the developments leave the CLARITY Act with its first major public law enforcement endorsement and one fewer national law enforcement organization formally opposing the legislation. Whether that translates into Senate momentum will depend on additional endorsements, potential revisions to Section 604, and lawmakers’ next steps.