Crypto Industry Pushes Back Against Law Enforcement Objections to Clarity Act

The Digital Asset Market Clarity Act, aimed at providing clarity on cryptocurrency regulations in the US, has hit another obstacle as law enforcement expresses concerns that it would shield crypto-related crime. The Blockchain Association, a leading voice in the industry, pushed back against these claims, arguing that the bill preserves a clear line between financial intermediation and neutral software development.

The dispute centers around Section 10604 of the Clarity Act, which creates a safe harbor for non-custodial developers and clarifies they aren't money transmitters. The National Sheriffs' Association (NSA), representing over 3,000 sheriffs and 10,000 public safety officials, wants this section deleted or narrowed.

The Blockchain Association's chief policy officer, Lindsay Fraser, emphasized the need to correct the record ahead of an expected floor vote in the Senate. They pointed to a separate letter signed by 160 former law enforcement and national intelligence officials urging the Senate to advance the bill.

This is the fourth distinct obstacle the Clarity Act has faced since it passed the House with a significant majority in July 2025. The bill's fate remains uncertain, with institutions waiting for US market structure clarity.