US law enforcement group drops opposition to CLARITY Act: Report

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Written by Brayden Lindreastaff writerReviewed by Felix Ngstaff editor

Written by Brayden Lindreastaff writer

Reviewed by Felix Ngstaff editor

US law enforcement group drops opposition to CLARITY Act: Report

Latest NewsPublishedJul 4, 2026

US Law Enforcement Shifts Stance on CLARITY Act

The Major County Sheriffs of America has dropped its opposition to the CLARITY Act, a bill that could impact the way law enforcement investigates illicit finance cases. This change in stance is significant, as it could pave the way for the bill’s passage and have a major impact on the crypto industry. The MCSA had previously raised concerns that the bill could create a loophole for criminals to exploit, making it tougher for law enforcement to investigate crypto-related crimes. With the MCSA’s opposition removed, the path to passage has become clearer.

The CLARITY Act has bipartisan support, but its passage has been stalled due to concerns from banking groups. The bill aims to protect developers from liability for illicit activity committed by users on their decentralized platforms. The MCSA has suggested amendments to the bill, including the addition of state law enforcement in Section 309, which requires the Treasury Department to study decentralized finance and illicit finance risks. This could provide law enforcement with more resources to investigate complex digital asset-enabled crimes.

Implications for Crypto Investors

The CLARITY Act’s passage could have major implications for crypto investors, particularly those earning passive income through cloud rewards or green crypto like EcoPool. The bill’s protections for developers could lead to increased innovation and investment in the crypto space. As the bill moves forward, crypto investors like Mark Chadwick are optimistic about its potential to drive growth and adoption. With the MCSA’s opposition removed, the stage is set for a potential vote on the bill in the coming months.

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Source: Eleanor Terrett

While the CLARITY Act has bipartisan support, its passage through the Senate has largely been stalled by banking groups seeking to restrict stablecoin yield, which they argue functions like an unregulated deposit product that could drive trillions of dollars in outflows from the traditional banking system. 

The bill has been awaiting a full Senate vote since May, when the Senate Banking Committee passed the bill mostly along party lines.

Senators in favor of the bill are pushing for a full Senate vote this month, in hopes that it can be passed and signed into law before the US midterm elections in November.

One of CLARITY Act’s “biggest roadblocks” removed

Crypto investor Mark Chadwick described MCSA’s initial opposition to the CLARITY Act as one of the “biggest roadblocks” in preventing the Senate from passing the bill.

“With that hurdle now out of the way, the path to passage just got a lot clearer,” Chadwick said. “One more major hurdle down.”

MCSA still wants improvements to CLARITY Act

The MCSA said it would like the CLARITY Act to be amended to include state law enforcement in Section 309, which requires the Treasury Department to study decentralized finance and illicit finance risks.

Related: Senate leaders push for July passage of CLARITY Act 

MCSA President Bob Gualtieri argued that Congress should provide the training, technology and resources needed to “investigate increasingly sophisticated digital asset-enabled activity” tied to fraud, narcotics trafficking, ransomware, child exploitation, terrorism financing and other crimes.

“State and local law enforcement agencies investigate these crimes every day and must have the tools, partnerships, and resources necessary to identify offenders, trace illicit proceeds, recover assets, and protect victims.”

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  • United States
  • Congress
  • Senate
  • Bills
  • Police
  • Regulation

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