The National Sheriffs’ Association (NSA) has softened its position on the Digital Asset Market Clarity Act, abandoning its earlier opposition and adopting a neutral stance as the legislation moves toward renewed Senate consideration.

NSA President Sheriff Troy Wellman and Executive Director Justin Smith informed Senate Majority Leader John Thune and Minority Leader Chuck Schumer of the change in a letter Thursday. They pointed to the complexity of the legislation and the many provisions that remain under debate.

The association said it believes lawmakers should be given room to continue the legislative process and work toward a clear and effective regulatory framework for digital assets.

NSA Had Raised AML Concerns

The shift comes several months after the NSA strongly criticized the bill. In May, the law enforcement group warned the Senate Banking Committee that Section 604 could give crypto mixers, tumblers and DeFi platforms broad exemptions from anti-money laundering requirements.

The association also cautioned that criminals could use new software, algorithms and AI agents to transfer digital assets in ways that make transactions difficult to trace. It said these technologies could potentially be exploited for money laundering, terrorist financing and sanctions evasion.

The concerns later led to discussions with the White House. In June, law enforcement groups that had voiced objections to the crypto market structure legislation were invited to discuss their concerns, particularly provisions involving protections against illicit finance.

The NSA’s criticism was challenged in July by Blockchain Association CEO Summer Mersinger. In a CoinDesk opinion article, Mersinger argued that the group’s opposition was based on a misunderstanding of the legislation and called the CLARITY Act a major consumer-protection initiative.

September Vote Still Uncertain

The NSA’s move to neutrality takes one of the bill’s most outspoken law enforcement critics off the opposition side ahead of the expected September Senate debate.

The CLARITY Act has faced months of negotiations and was pushed into September after the Senate failed to hold an initial final vote. Lawmakers still have several contentious issues to resolve, including an ethics provision that Democrats want included before supporting the measure.

The House has also said it plans to conduct its final votes shortly after the Senate returns and before the midterm elections. With lawmakers facing a narrowing legislative window, the bill is unlikely to become law before the November election.