The Major County Sheriffs of America (MCSA) has withdrawn its opposition to the decentralized finance (DeFi) provision of the CLARITY Act, adopting a neutral stance after ongoing discussions with the Trump administration. The shift, confirmed in a letter to Senate Banking Committee Chair Tim Scott and Ranking Member Elizabeth Warren, concerns Section 604—the Blockchain Regulatory Certainty Act—which would shield software developers and infrastructure providers from liability for crimes committed by users of decentralized platforms, as long as they do not control customer funds.
Law enforcement agencies had previously argued the language could hinder investigations into illicit crypto activity. However, the MCSA now says the administration provided additional clarity on how the DeFi language would be interpreted and implemented. The group stopped short of full endorsement, proposing amendments to give state and local law enforcement a formal role in Treasury studies and advisory bodies under the legislation.
Senator Bill Hagerty outlined a revised timeline, with the final text of the bill expected this weekend and Senate floor action likely after the July 13 recess. Bloomberg Intelligence now places the probability of the CLARITY Act passing in July at around 60%, while Polymarket odds of President Trump signing it into law this year have climbed back above 50%.
The MCSA’s decision, combined with support from other law enforcement organizations like the National Organization of Black Law Enforcement Executives (NOBLE), removes a key obstacle to the bill’s progress. Remaining points of debate include ethics provisions pushed by Senator Kirsten Gillibrand, who wants to prohibit members of Congress and their spouses from issuing or promoting crypto assets before major digital asset legislation advances.
