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<a href="https://theblockchainassociation.org/posts/blockchain-association-and-crypto-council-for-innovation-joint-statement-in-response-to-law-enforcement-engagement-on-the-clarity-act" target="_blank" rel="noopener">The Blockchain Association</a> sent a formal rebuttal letter to Senate Majority Leader John Thune. It pushes back hard against the National Sheriffs’ Association’s read of the CLARITY Act. The landmark crypto market structure bill is moving through the Senate. No confirmed vote date yet.
The fight is over three things: DeFi protocol liability, privacy tools like mixers, and AML obligations for <a href="https://www.thecoinzone.com/blockchain/blockchain-bridges/" data-wpil-monitor-id="2793">blockchain bridges</a>.
The NSA wrote to the Senate Banking Committee in May 2026. Their concern: CLARITY Act provisions could blunt law enforcement’s ability to chase illicit finance through DeFi, mixers, and cross-chain bridges. The publicly available letter, referencing HR 3633, argues the <a href="https://www.thecoinzone.com/news/senate-crypto-bill-stalls-coinbase-withdraws/" data-wpil-monitor-id="2796">bill’s structure</a> could open enforcement gaps. Gaps criminals would exploit.
The Blockchain Association disagrees. Flatly. The group teamed with the <a href="https://www.thecoinzone.com/news/sec-shifts-from-crypto-crackdown-to-framework/" data-wpil-monitor-id="2799">Crypto Council for Innovation</a> on a joint statement May 13, 2026. It contested law enforcement’s characterization of the bill. The Thune letter escalates that. It goes straight to Senate leadership. The floor vote is close.
The Senate <a href="https://www.thecoinzone.com/news/global-central-banks-support-powell-independence/" data-wpil-monitor-id="2802">Banking</a> Committee isn’t sitting back. It published a Myth vs. Fact sheet and a separate facts page defending <a href="https://www.thecoinzone.com/regulation/clarity-act-stablecoins-eth-defi-explained/" data-wpil-monitor-id="2794">CLARITY Act’s</a> approach. Both describe the bill as risk-based and targeted. Compliance rules for intermediaries that touch <a href="https://www.thecoinzone.com/defi/cowswap-exchange/" data-wpil-monitor-id="2792">decentralized protocols</a>. Not blanket exemptions for bad actors.
Banking Committee Chairman Tim Scott released the <a href="https://www.thecoinzone.com/news/major-crypto-bill-senate-committee-april/" data-wpil-monitor-id="2800">bill text alongside Senators</a> Cynthia Lummis and Thom Tillis. They’re framing it as bipartisan. The goal: clear regulatory jurisdiction between the SEC and CFTC over <a href="https://www.thecoinzone.com/news/hana-standard-chartered-digital-assets-partner/" data-wpil-monitor-id="2795">digital assets</a>.
The NSA isn’t alone. Crypto Briefing and CoinEdition reported in June 2026 that other enforcement-aligned groups raised similar objections. DeFi carve-outs. Same concern, different letterhead.
The stakes are real. The DOJ already prosecuted <a href="https://www.thecoinzone.com/regulation/tornado-cash-sanctions-dropped-heres-what-it-means-for-crypto/" data-wpil-monitor-id="2797">Tornado Cash</a> developers. FinCEN’s rulemaking on unhosted wallets is ongoing. Scrutiny of privacy tools and <a href="https://www.thecoinzone.com/news/decentralized-gpu-networks-ai-infrastructure/" data-wpil-monitor-id="2798">decentralized infrastructure</a> is sharpened. How CLARITY Act defines DeFi liability and bridge compliance will set the legal baseline for an entire category of crypto activity.
Institutional signals are already moving. Hashdex reportedly announced the liquidation of its DeFi-focused Bitcoin ETF. Regulatory uncertainty is hitting product decisions now. The <a href="https://www.thecoinzone.com/news/compliance-blockchain-stablecoins-needed/" data-wpil-monitor-id="2801">Blockchain</a> Association’s rebuttal still needs to land with leadership. That means Senate decision-makers have to weigh industry arguments against law enforcement pressure. The final stretch is here.

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Blockchain Association Pushes Back on CLARITY Act Critics

Blockchain Association rebuts National Sheriffs' concerns over CLARITY Act's DeFi liability rules as the crypto market structure bill nears a Senate floor vote.