CLARITY Act Update for XRP Holders: 3000+ National Sheriffs’ Association Sends Warning Letter

The National Sheriffs’ Association sent a formal warning letter to Senate Majority Leader John Thune and Minority Leader Charles Schumer on July 31. Crypto analyst Diana (InvestWithD) shared the news with her audience, attaching a video of the letter.

Signed by NSA President Sheriff Troy Wellman and Executive Director Justin Smith, the letter represents 3,081 elected sheriffs and approximately 10,000 public safety professionals across the U.S. The NSA attached a 13-page memorandum laying out a section-by-section analysis of its concerns with the bill.

The Core Concern

The NSA’s position is clear. While the association supports establishing a regulatory framework for digital assets, it wants significant changes before the Senate votes. The letter states the bill “would create broad exemptions from registration, know-your-customer, anti-money laundering, and sanctions-law requirements for certain decentralized-finance participants.”

The NSA warns this would allow illicit actors to exploit platforms designed to obscure digital-asset transactions. The memorandum takes particular issue with Section 604, which would exempt non-controlling developers and DeFi protocol participants from AML obligations.

The NSA argues this blanket exemption would cover mixers, tumblers, and cross-chain bridges, which exist specifically to obscure transaction trails. The association also criticizes Section 301, which would exempt decentralized finance trading protocols from AML requirements including registration, conduct, disclosure, and recordkeeping obligations.

The Vote Is Coming Fast

The NSA’s letter arrives at a critical moment. The Senate needs 60 votes to clear the cloture threshold. The bill already holds 51 confirmed yes votes. Bloomberg congressional reporter Steven Dennis confirmed that 7 to 10 Democrats are ready to vote for the CLARITY Act, telling reporters it “sounds like they want to ultimately pass a bill.” That puts the total between 58 and 61 votes.

Senator Cynthia Lummis has also declared negotiations finished. She called the bill “a high-quality bill” and said she wants a floor vote immediately. Treasury Secretary Scott Bessent publicly pressured the Senate, demanding lawmakers vote “NOW.” The Senate recesses on August 8, making the next few days the final window.

What XRP Holders are Watching

XRP holders are watching the CLARITY Act closely. The bill would establish a statutory distinction between digital commodities and securities, placing XRP’s commodity status into law. It would grant the CFTC jurisdiction over spot markets for sufficiently decentralized assets.

The NSA’s letter urges the Senate to address the law enforcement risks before a vote, not after. The association says it stands ready to discuss these issues. Whether the Senate acts on those concerns or proceeds to a vote as written will determine whether the CLARITY Act becomes law before the August recess.