National Sheriffs' Association Drops Opposition to CLARITY Act Ahead of Senate Vote

The National Sheriffs' Association (NSA) has withdrawn its opposition to the CLARITY Act, adopting a neutral position just 12 days before the Senate's scheduled September 15 procedural vote.

This shift in stance comes after months of consideration and debate over the bill's treatment of decentralized services and software developers. Section 604, which addresses anti-money laundering rules for DeFi platforms and non-custodial software, was a major point of contention for the NSA.

In a May letter to the Senate Banking Committee, the NSA warned that Section 604 could provide a 'blanket exemption' from anti-money laundering requirements for mixers, tumblers, and decentralized finance platforms. However, supporters argue that publishing code is different from operating a financial service or controlling customer money.