National Sheriffs' Association shifts to neutral stance on Digital Asset Market Clarity Act

The National Sheriffs’ Association has shifted its stance on the Digital Asset Market Clarity Act from opposed to neutral, easing pressure on lawmakers ahead of a September 15, 2026 Senate cloture vote. While the group previously warned that Section 604 could exempt decentralized finance from anti-money laundering rules, it now favors letting the legislative process proceed. Despite this shift, outstanding ethics issues and the congressional calendar make passage before the November election unlikely.

NSA position shift to neutral

• ▪The National Sheriffs' Association stated it changed its position because the Digital Asset Market Clarity Act is complex and has many important details still under consideration.
• ▪The National Sheriffs' Association changed its position on the Digital Asset Market Clarity Act from opposed to neutral in a letter dated September 3, 2026.
• ▪National Sheriffs' Association President Sheriff Troy Wellman and Executive Director Justin Smith signed the September 3, 2026 letter addressed to Senate Majority Leader John Thune and Minority Leader Chuck Schumer.
• ▪The National Sheriffs' Association clarified that its shift to a neutral stance does not mean the group endorses the Digital Asset Market Clarity Act.

Section 604 DeFi compliance dispute

• ▪In a May 2026 letter to the Senate Banking Committee, the National Sheriffs' Association warned that Section 604 of the Digital Asset Market Clarity Act would give crypto mixers, tumblers, and decentralized finance platforms a blanket exemption from anti-money laundering rules.
• ▪The National Sheriffs' Association warned in May 2026 that software, algorithms, and artificial intelligence could be used to transfer digital assets without tracing, enabling money laundering, terrorism financing, and sanctions evasion.
• ▪Blockchain Association CEO Summer Mersinger argued in a July 2026 opinion article that the National Sheriffs' Association's concerns were misplaced and called the Digital Asset Market Clarity Act an important consumer protection effort.
• ▪The National Sheriffs' Association sent a July 31, 2026 letter to Senate leaders arguing that proposed exemptions in the Digital Asset Market Clarity Act could weaken registration, know-your-customer, anti-money laundering, and sanctions requirements for decentralized finance.

Law enforcement coalition dynamics

• ▪The 382,000-member Fraternal Order of Police endorsed the revised Digital Asset Market Clarity Act after concluding that changes preserved criminal investigations and existing statutes.
• ▪The Major County Sheriffs of America previously moved its position on the Digital Asset Market Clarity Act from opposition to neutral.
• ▪The White House invited law enforcement organizations that opposed the Digital Asset Market Clarity Act to meet and discuss objections regarding protections against illegal finance.

Senate procedural vote timing

• ▪Senate Majority Leader John Thune filed cloture on August 8, 2026 on the motion to proceed to H.R. 3633, with a procedural vote scheduled for September 15, 2026.
• ▪Outstanding issues for the Digital Asset Market Clarity Act include a key ethics provision desired by Democrats and rules limiting the president's ability to profit from digital assets.
• ▪The House of Representatives' plan to hold final votes before the midterm election right after the Senate returns makes passage of the Digital Asset Market Clarity Act before the November 2026 election unlikely.
• ▪The scheduled September 15, 2026 Senate cloture vote on H.R. 3633 requires 60 votes to limit debate, meaning Republicans, who hold 53 seats, need support from at least seven Democrats.

CLARITY Act regulatory framework

• ▪The Digital Asset Market Clarity Act of 2025, or H.R. 3633, proposes to divide oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
• ▪U.S. Senator Cynthia Lummis and House Majority Whip Tom Emmer publicly welcomed the National Sheriffs' Association's shift to a neutral stance on the Digital Asset Market Clarity Act.
• ▪The House of Representatives passed H.R. 3633 by a vote of 294-134 on July 17, 2025, before sending it to the Senate.

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