NSA Shifts Stance on CLARITY Act Ahead of Crucial Senate Vote

The National Sheriffs' Association (NSA) has dropped its opposition to the Digital Asset Market Clarity Act, also known as the CLARITY Act. The NSA had been one of the loudest law enforcement voices against the bill, warning that a section of the legislation would give crypto mixers, tumblers, and DeFi platforms a blanket exemption from anti-money laundering rules.

The association cited the complexity of the legislation and ongoing work by Congress, the administration, and other stakeholders as reasons for its change in stance. The NSA's President Troy Wellman and Executive Director Justin Smith said they would 'step back and allow the legislative process to proceed'.

In a letter sent to Senate Majority Leader John Thune and Minority Leader Chuck Schumer on Thursday, the NSA also mentioned that bad actors could use software and AI to move digital assets without accountability, launder money, finance terrorism, and evade sanctions.