MCSA Shifts Stance on CLARITY Act, Seeks Expanded Role for Local Enforcement

The Major County Sheriffs of America (MCSA) has shifted its position on the Digital Asset Market CLARITY Act (H.R. 3633), moving from opposition to neutrality after discussions over Section 604, also known as the Blockchain Regulatory Certainty Act.

In a July 3 letter addressed to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, MCSA said that continued discussions with the administration and state and local law enforcement had provided 'additional clarity' on the interpretation and expected implementation of Section 604.

The organization added that there remains an opportunity to strengthen the legislation while supporting responsible innovation and law enforcement's operational needs.

MCSA continues to have concerns about Section 604, which addresses the regulatory treatment of non-custodial software developers and distributed ledger service providers. Law enforcement groups have argued this provision could make it harder to prosecute financial crimes involving cryptocurrency.