CLARITY Act Clears Sheriff Opposition, but House Schedule Puts Passage at Risk

CLARITY ACT

The CLARITY Act has lost one of its most persistent law-enforcement critics just as Congress is running out of days to finish the job. The National Sheriffs’ Association has stepped back from its opposition, easing one problem for the crypto market structure bill. But a shortened House calendar has created another. With the midterm recess approaching, the latest turn in US crypto regulation may matter less than the handful of voting days lawmakers have left.

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Sheriffs Step Aside, but Do Not Endorse the Bill

Source: NSA

The sheriffs’ group said in a September 3 letter that it was changing its position and would allow the legislative process to continue. This is not an endorsement. But it does remove a vocal opponent that had warned the bill’s treatment of decentralized finance could create gaps in anti-money-laundering enforcement.

Those concerns became a public fight in August. The Blockchain Association argued that the sheriffs had misread the legislation and said existing sanctions and financial-crime laws would continue to apply. The Major County Sheriffs of America had already adopted a neutral position in July.

For supporters, the shift makes the Senate vote slightly easier. It does not solve the harder problem waiting on the calendar.

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House Exit Raises the Risk of a CLARITY Act Delay

House Republican leaders have cancelled votes during the final two weeks of September, according to the American Bankers Association’s Banking Journal. Members are now expected to leave Washington after September 17 to campaign before the November 3 midterms.

The Senate returns on September 14, with a procedural vote on the CLARITY Act expected the following day. This leaves only a few overlapping days for the two chambers to work.

The House passed its version in July 2025 by 294 votes to 134. Senate negotiations have since covered DeFi rules, ethics restrictions, and the division of authority between the SEC and CFTC. Any amended version would need to go back to the House.

This is why the sheriffs’ retreat, while politically useful, may have come too late. The bill has fewer organized critics standing in its path, but little room for amendments or another round of negotiations. The next CLARITY Act delay may be caused by Congress leaving town rather than another policy dispute.

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Sahana Kiran

Written by Sahana Kiran

Sahana Kiran has been covering financial markets since 2019, with a focus on cryptocurrencies, fintech, and the geopolitical events shaping them. She previously reported for AmbCrypto and Watcher Guru, and now writes for BlockNow.

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