The National Sheriffs’ Association withdrew its opposition to the Digital Asset Market Clarity Act on Thursday, writing to Senate leadership that it was moving to a neutral position given how complex the legislation is and how many important details remain under consideration. The group represents more than 3,000 elected sheriffs nationwide.

NSA President Sheriff Troy Wellman of Moody County, South Dakota, and Executive Director Justin Smith addressed the letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer. The most appropriate course, they wrote, is to “step back and allow the legislative process to proceed” toward a clear and effective regulatory framework.

This story is an excerpt from the Unchained Daily newsletter.

The reversal matters because law enforcement opposition has been one of the major hurdles facing the Clarity Act. In May, the NSA told the Senate Banking Committee that section 604, which would exempt decentralized finance protocols from money transmitter obligations, would give mixers, tumblers and DeFi platforms a blanket exemption from anti-money-laundering rules, and warned that evolving software, algorithms and agentic AI would be used to move digital assets without tracing, launder money, finance terrorism and evade sanctions.

The White House invited law enforcement organizations that had raised concerns to a meeting a month after the May letter, with the aim of working through objections about illicit finance.

Despite the NSA’s shift, Clarity’s path to becoming law this year remains uncertain. It is set for a cloture vote in September but an ethics provision that Democrats want remains unresolved, and the House said last week that it would hold its final votes before the midterms immediately after the Senate returns, which effectively rules out the bill becoming law before November.

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