Key Takeaways
Major County Sheriffs of America shifted from concern to neutrality after further review and talks with the Administration.The group seeks inclusion of state and local law enforcement in Treasury studies, advisory groups, and interagency bodies.It said implementing a federal digital asset framework requires training, technology, forensic tools, and investigative resources.
MCSA Moves to Neutral After Further Review
Major County Sheriffs of America (MCSA), representing 113 sheriff’s offices in counties of at least 500,000 residents and serving more than 130 million people, changed its position on the Digital Asset Market Clarity Act (H.R. 3633). The move followed additional review and discussions with the Administration on Section 604, a provision outlining regulatory and enforcement requirements.
In a July 3 letter to Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), the group said discussions clarified the Administration’s interpretation and implementation approach. The letter followed a May 14 communication raising concerns.
MCSA did not endorse the bill and said it is now neutral while continuing to seek targeted amendments. The letter states:
“MCSA is now neutral on H.R. 3633.”
The shift drew attention in the crypto sector, including a brief positive reaction from Coinbase CEO Brian Armstrong. However, MCSA emphasized law enforcement implementation concerns rather than policy endorsement.
Law Enforcement Role in Digital Asset Policy
MCSA urged Congress to amend H.R. 3633 to ensure state and local agencies are included in the Treasury study under Section 309 and in any advisory or interagency bodies created under the act.
It argued that local agencies handle most digital asset-related investigations and should therefore contribute to regulatory and enforcement policy development.
The letter also ties the policy debate to public safety. MCSA said criminal organizations increasingly use digital assets to facilitate and conceal narcotics trafficking, fraud, ransomware, child exploitation, organized retail theft, and terrorism financing.
The group stated:
“We are dedicated to preserving the highest integrity in law enforcement and the elected Office of the Sheriff. Our membership represents over 130 million citizens.”
Resources Remain Central to MCSA’s CLARITY Act Position
MCSA said a federal framework requires operational capacity at the state and local level. It called for resources to support training, technology, forensic capabilities, and investigative work.
“The legislation should also recognize that establishing a new federal framework must be accompanied by the resources necessary for state and local law enforcement to implement it effectively,” the letter details, adding:
“Congress should support the training, technology, forensic capabilities, and investigative resources needed to investigate increasingly sophisticated digital asset-enabled crime and ensure agencies can keep pace with rapidly evolving criminal threats.”
The organization said it will continue engaging Congress, the Administration, and stakeholders on refinements to H.R. 3633 to support enforcement capacity and responsible innovation.
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