CLARITY Act path clears as U.S. Sheriffs drop opposition – Reasons explained!

The crypto market structure bill, the CLARITY Act, has seen improved support for Section 604 (developer protections). But the ethics issue could become complicated after reports of U.S. President Donald Trump’s latest $1.4B crypto windfall. 

In a letter to the Senate, the Major County Sheriffs of America (MCSA) said it has shifted its position on the bill to “neutral,” noting the ongoing talks on Section 604. 

We believe there remains an opportunity to further strengthen the legislation in ways that support responsible innovation and the practical needs of state and local law enforcement.

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The law enforcement group further called for the framework to provide necessary resources to help federal and state officers implement the digital assets policy effectively. 

In June, four different law enforcement agencies, Catholic groups, and the banking lobby opposed Section 604 of the bill, arguing that it would facilitate illicit financial flows. 

As such, the neutral stance by MCSA showed improved support from some of those who previously opposed the bill.

For Coinbase CEO Brian Armstrong, the update was ‘huge,’ implying a clearer path to passage of the CLARITY Act, now that the law enforcement concerns have been addressed. 

Will Trump’s $1.4B crypto profit derail CLARITY Act?

However, the ethics concerns are back on the table. Recent reports showed the Trump family’s crypto empire made over $1.4B in 2025. Over $630M of the profit was from the Official Trump memecoin. 

Based on the above, Senator Kirsten Gillibrand has renewed ethics concerns and call to bar elected officials creating their own crypto tokens. 

This is a commonsense requirement that should get broad bipartisan support – public officials and their spouses should not be issuing memecoins.

She added,

We cannot let self-dealing destroy an opportunity to strengthen consumer protections, crack down on illicit finance, and expand economic opportunity for the millions of Americans our financial system has left behind.

Worth noting that the ethics provisions in the CLARITY Act hit a rocky start last month. But Democrats insisted that the concerns must be addressed before they support the bill. 

Reacting to Trump’s crypto windfall, Hasu, a strategic advisor at Lido, raised similar worries and noted, 

Shameful is what it is. And I don’t see how it doesn’t backfire on this industry in a major way.

Source: X

The final updated CLARITY Act text was speculated to be published the July 4th weekend with a potential Senate floor vote later in the month. 

While Bloomberg projected a 60% chance the bill becomes law this year, Galaxy Research is 50-50. It remains to be seen whether ethics provisions will derail the bill’s progress. 

Final Summary

• A sheriff’s group flipped its stance on the CLARITY Act from ‘opposition’ to ‘neutral’ 
• However, Sen Gillibrand has renewed calls for ethics provisions after Trump’s $1.4B crypto profit