Major County Sheriffs of America (MCSA), representing 113 sheriff's offices serving more than 130 million people, shifted its position on the Digital Asset Market Clarity Act (H.R. 3633) to neutral in a July 3 letter to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren. The move followed additional review and discussions with the Administration on Section 604, a provision outlining regulatory and enforcement requirements. The group previously raised concerns in a May 14 communication. MCSA emphasized it did not endorse the bill and continues to seek targeted amendments to include state and local law enforcement in Treasury studies and advisory bodies.
MCSA Requests Inclusion in Treasury Studies and Advisory Bodies
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. The group argued that local agencies handle most digital asset-related investigations and should therefore contribute to regulatory and enforcement policy development. The July 3 letter states: "MCSA is now neutral on H.R. 3633." The organization said discussions clarified the Administration's interpretation and implementation approach.
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.
MCSA Links Digital Assets to Criminal Activity Including Narcotics Trafficking and Fraud
MCSA tied the policy debate to public safety. The group said criminal organizations increasingly use digital assets to facilitate and conceal narcotics trafficking, fraud, ransomware, child exploitation, organized retail theft, and terrorism financing. The letter states: "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."
MCSA Calls for Training, Technology, and Forensic Resources to Support Federal Framework
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 letter details: "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 organization added: "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."
MCSA said it will continue engaging Congress, the Administration, and stakeholders on refinements to H.R. 3633 to support enforcement capacity and responsible innovation.
FAQ
What did Major County Sheriffs of America do on July 3?
Major County Sheriffs of America sent a letter to Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren shifting its position on the Digital Asset Market Clarity Act (H.R. 3633) to neutral after additional review and discussions with the Administration on Section 604.
Why does MCSA want amendments to H.R. 3633?
MCSA seeks amendments to include state and local law enforcement in the Treasury study under Section 309 and in any advisory or interagency bodies created under the act. The group argued that local agencies handle most digital asset-related investigations and should contribute to regulatory and enforcement policy development.
