Sheriffs group drops opposition to CLARITY Act DeFi

A major law enforcement group has withdrawn its opposition to a key cryptocurrency bill, easing a significant hurdle as the U.S. Senate prepares to resume debate on the legislation. The Major County Sheriffs of America announced it has shifted from opposing to a neutral stance on the decentralized finance provision within the CLARITY Act, a comprehensive market structure bill for digital assets.

The organization communicated its updated position in a letter sent on Friday, July 3, to Senate Banking Committee Chair Tim Scott and Ranking Member Elizabeth Warren. The change follows what the group described as continued review of the legislation and discussions with the Trump administration, which provided additional clarity on how officials expect the provision to be interpreted and implemented.

The provision in question, Section 604, is part of the Blockchain Regulatory Certainty Act embedded within the broader CLARITY Act. It aims to protect software developers and infrastructure providers from legal liability for crimes committed by users of decentralized platforms, provided they do not control customer funds. Law enforcement organizations had previously argued this language...