Blockchain Association Fires Back at National Sheriffs Over Clarity Act Claims
The Blockchain Association is pushing back against claims made by the National Sheriffs' Association regarding the Digital Asset Market Clarity Act. In a letter sent to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the industry group argued that the sheriffs misread the bill.
According to the Blockchain Association, the CLARITY Act imposes rigorous Bank Secrecy Act and sanctions compliance requirements on digital asset intermediaries, including brokers and exchanges. These obligations are tied to whether an entity has control over user funds and transactions, a distinction the NSA allegedly overlooked.
The National Sheriffs' Association had previously raised concerns about potential exemptions for DeFi protocols and software developers in their May 13 letter. They argued that bad actors could exploit decentralized platforms that fall outside the bill's regulatory perimeter.
The Blockchain Association pointed out that the bill preserves oversight authority for FinCEN, the Treasury's financial crimes unit, and OFAC, the office responsible for enforcing economic sanctions. Multiple law enforcement organizations support the bill, including the Fraternal Order of Police and a coalition of 160 former national security officials.