Daniels was accused of grabbing a female detective's head and forcing the officer's face between her breasts.
"Just [received] word that my client @StormyDaniels was arrested in Columbus Ohio [while] performing the same act she has performed across the nation at almost a hundred strip clubs", Daniels's lawyer Michael Avenatti tweeted Thursday morning. She was released from jail around 6:30 a.m. Thursday morning, WSYX/WTTE reported.
The porn star is due to appear in court on Friday.
The high-powered attorney claims the arrest was "part of a sting" based on a "puritan law" that says there is absolutely no touching in strip clubs in Columbus.
Avenatti, an outspoken lawyer who has become a sharp critic of Trump, said he saw political machinations behind the arrest.
Adult film actress Stormy Daniels was arrested in Columbus, Ohio Wednesday night. He vowed to fight the "bogus charges", even suggesting there are "higher priorities" at stake for the police.
In Ohio, it is illegal for an employee who is "nude or seminude" at a sexually oriented business to be touched by a patron or to touch a patron, with the exception of an immediate family member. A violation is a misdemeanor.
After the undercover investigators witnessed Clifford touching strip club patrons, they approached the stage where Clifford was performing, and Clifford made her way toward them - apparently not realizing that they were undercover officers - and treated them much in the same manner as she had previous patrons.
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"Are you kidding me?" he asked.
"It was an absurd use of law enforcement resources", Avenatti said.
On Thursday afternoon, Avenatti announced on Twitter that prosecutors had dropped the charges against his client.
Daniels was scheduled to perform at Sirens Gentlemen's Club on Wednesday and Thursday, according to its website. Trump has denied it.
Her attorney said they will be opposing all charges.
Cohen paid Daniels $130,000, just days before the 2016 election, in exchange for her silence.
Daniels has said she had sex with President Donald Trump in 2006 when he was married, which Trump has denied. But according to a Columbus Dispatch article in September 2017, the law has rarely been used since then.
Cohen has said he made the payment.
Avenatti on Twitter cited an official statement from Daniels saying that because of her arrest Thursday night's performance was canceled.