Senate GOP Unveils "Final" Clarity Act Text Ahead of Tuesday Cloture Vote - Blockonomi
by Brenda Mary · BlockonomiTLDR:
Table of Contents
- TLDR:
- Ethics Rules and Stablecoin Safeguards Anchor the Revised Text
- Bipartisan Momentum Builds Ahead of the Senate Vote
- Revised Clarity Act includes 126 Democrat-requested changes after a year of negotiations
- New ethics rules require crypto divestment or blind trusts for federal officials
- Treasury Secretary gains circuit-breaker power to protect community bank deposits
- BlackRock, Goldman Sachs, and major law enforcement groups back the final bill
The Clarity Act has reached its final stage in the Senate, with Republicans releasing revised text they call their last offer to Democrats before Tuesday’s cloture vote.
Senate Banking Digital Assets Subcommittee Chair Cynthia Lummis, joined by Chairmen John Boozman and Tim Scott, unveiled the updated draft.
The text reflects over a year of bipartisan talks and includes 126 substantive changes requested by Democrats, covering ethics, stablecoins, and consumer protections.
Ethics Rules and Stablecoin Safeguards Anchor the Revised Text
The revised Clarity Act narrows protections under the Blockchain Regulatory Certainty Act. Coverage now focuses on the Bank Secrecy Act and civil enforcement matters.
Developers still receive shielding from money transmission registration requirements under the updated framework. A civil safe harbor remains part of the package for software builders.
New ethics provisions require lawmakers to divest substantial crypto holdings or place them in blind trusts. The language reflects most of the Tillis-Gallego ethics proposal from earlier negotiations.
State attorneys general gain a meaningful enforcement role under the updated draft. Lummis said, “President Trump voluntarily agreed to unprecedented ethics restrictions, holding every federally elected official, judge, and their spouses to some of the toughest ethics restrictions in U.S. history.”
Stablecoin provisions include a circuit breaker mechanism tied to community bank deposits. The Treasury Secretary would gain authority to act if deposits shift sharply into stablecoins.
This safeguard aims to protect community banks, farmers, and small businesses. Tighter guardrails on vertical integration and affiliate trading also appear in the text.
The bill clarifies that state consumer protection laws remain applicable to digital asset markets. Developer protections do not exempt activities from derivatives laws under the revised language.
Prediction markets remain unaffected by the developer carve-outs included in the draft. Lummis added that the text “is truly bipartisan and includes more than 120 of Democrats’ demands.”
Bipartisan Momentum Builds Ahead of the Senate Vote
Chairman Boozman, who led the Agriculture Committee’s portion of the bill, praised the collaborative process. “We have an opportunity to establish clear rules of the road that will protect consumers, strengthen our markets, and ensure we remain a global leader in digital asset innovation,” he said.
Boozman credited Lummis for her sustained leadership throughout the negotiations. He called the current moment critical for maintaining American leadership in digital assets.
Chairman Scott framed the bill around everyday financial security for American families. “Growing up with a single mom in South Carolina, I learned that every dollar matters,” he said.
Scott said the bill “will protect Americans’ hard-earned money, keep innovation and jobs in America, and strengthen our national security.” He thanked Boozman and Lummis for their partnership on the effort.
Major financial institutions have voiced support for the legislation, including BlackRock and Goldman Sachs. Fidelity, Franklin Templeton, Charles Schwab, and SoFi also back the current text. Law enforcement groups, including the National Fraternal Order of Police, support the bill as well.
The National Sheriffs Association and the Majority County Sheriffs Association recently dropped their opposition. Together, these groups represent law enforcement protecting more than 130 million Americans nationwide.
Lummis said a “no” vote Tuesday would mean “leaving Americans with zero protections in the digital asset markets.” The Senate is expected to hold its cloture vote Tuesday afternoon.