A major U.S. law enforcement organization has withdrawn its opposition to sweeping digital asset legislation, removing a vocal obstacle just as the Senate prepares to take up the measure later this month.

The National Sheriffs’ Association told Senate leadership in a letter dated Thursday that it now holds a “neutral” position on the Digital Asset Market Clarity Act, a shift from its earlier stance that the bill would hamper criminal investigations involving cryptocurrency. The reversal comes ahead of a procedural vote scheduled for Sept. 15, when senators return from their August recess.

The group’s earlier criticism centered on provisions that would exempt crypto mixers — services that obscure transaction trails — from various…