Major County Sheriffs drop opposition to CLARITY Act crypto provisions

In a letter addressed to Senate Banking Committee Chair Tim Scott and Ranking Member Elizabeth Warren, the MCSA confirmed it has shifted to a neutral stance following recent deliberations regarding Section 604, which covers the Blockchain Regulatory Certainty Act. This section is designed to shield software developers and infrastructure providers from liability for crimes committed by users on decentralized platforms, provided these entities do not exercise control over customer funds. Law enforcement groups previously warned that such language could complicate investigations into illicit digital asset activity.

While the MCSA no longer opposes the measure, its support remains conditional. The association is now pushing for state and local law enforcement to hold a formal role in Treasury studies and advisory bodies mandated by the legislation. Arguing that local agencies handle the majority of cryptocurrency-related crime, the group insists these authorities must help shape policy recommendations. Furthermore, the MCSA emphasized that any new federal regulatory framework must be accompanied by appropriate funding and resources for local departments to effectively enforce the rules.

Legislative momentum appears to be building despite a revised timeline. Senator Bill Hagerty indicated that the final text is expected this weekend, with floor action likely following the July recess on July 13. Bloomberg Intelligence now estimates a 60% probability of the bill passing this month, while prediction markets show renewed confidence in President Donald Trump signing the legislation into law this year. Even so, Senator Kirsten Gillibrand continues to advocate for stricter ethics provisions, specifically targeting crypto promotion by members of Congress and their spouses.