The Major County Sheriffs of America (MCSA) has shifted to a neutral stance on the CLARITY Act. The group dropped its opposition after discussions with the administration regarding Section 604 of the digital asset bill.

In a July 3 letter to Senate Banking leaders Tim Scott and Elizabeth Warren, the group cited additional clarity. Recent talks addressed how the provision would be interpreted and implemented.

Why the Sheriffs Changed Course on the CLARITY Act

MCSA represents sheriffs’ offices in counties of 500,000 residents or more, serving over 120 million Americans. That reach covers roughly one-third of the US population, which gave its May 14 objection real weight.

The dispute centers on Section 604, also known as the Blockchain Regulatory Certainty Act. The provision shields non-custodial developers who do not control customer funds from money transmission rules.

Police groups had warned that the language could complicate prosecutions of crypto-enabled financial crime. Their resistance fed broader law enforcement opposition over the same section. However, supporters counter that the provision preserves liability for anyone who knowingly moves illicit funds.

“Based on that continued review, MCSA is now neutral on H.R. 3633. We look forward to continuing to work with Congress and the Administration on targeted improvements to the bill…”

Sheriff Bob Gualtieri of Pinellas County, Florida, signed the letter. Gualtieri began a two-year term as MCSA president in February.

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Sheriffs Want a Seat at the Table and More Resources

The organization stopped short of an endorsement. Instead, it asked Congress for a formal state and local role in the Section 309 Treasury study. It also seeks seats on advisory bodies and interagency working groups created under the Act.

The letter further requested funding for training, technology, and blockchain forensics. MCSA says local agencies handle most digital asset crime, from fraud and ransomware to narcotics trafficking and child exploitation.

The shift lands one day after NOBLE delivered the first police endorsement of the bill. Meanwhile, Senator Cynthia Lummis has defended the bill against Warren’s claims of illicit finance, citing more than 16 built-in safeguards.

The bill still needs 60 Senate votes before the August recess. Galaxy Research recently cut passage odds to 50% as floor time shrinks. Investor Mark Chadwick argued the sheriffs’ shift removes a major obstacle from that math.

“This is bigger than it looks…Their opposition was one of the biggest roadblocks in the Senate, reinforcing law enforcement concerns and stalling momentum. With that hurdle now out of the way, the path to passage just got a lot clearer. One more major hurdle down,” he wrote.

The coming weeks will show whether Congress folds the sheriffs’ requests into a bill that already earmarks $150 million for enforcement. For now, the loudest local objection has left the field.

Source: BeInCrypto