Key Points
- Senate Republicans released a revised 635-page CLARITY Act proposal two days before a key procedural vote, adding major ethics restrictions covering federal officials and digital assets.
- The bill includes 126 changes requested by Democrats, along with revisions to stablecoin rewards, the Blockchain Regulatory Certainty Act and consumer protections.
- The Tuesday vote will determine whether the Senate can advance the legislation toward floor consideration, with prediction-market odds for passage rising to 35%.
Republicans Make Final Push for CLARITY Act
Senate Republicans have released what they are calling a “final” version of the CLARITY Act in an effort to secure Democratic support ahead of a pivotal procedural vote Tuesday.
The 635-page proposal was released Sunday by Senate Banking Digital Assets Subcommittee Chair Cynthia Lummis alongside Banking Committee Chairman Tim Scott and Agriculture Committee Chairman John Boozman.
The revised legislation comes after roughly a year of bipartisan negotiations and incorporates 126 changes requested by Democrats, according to Lummis.
The procedural vote is scheduled for Tuesday at 2:15 p.m. ET and will determine whether the Senate can move the bill toward floor consideration.
A Republican aide described the proposal as the party’s final offer to Democrats.
Trump-Backed Digital Asset Ethics Rules
One of the most significant changes involves restrictions on federal officials’ involvement with digital assets.
Lummis said the new ethics provisions were agreed to by President Donald Trump and would establish restrictions on federally elected officials, judges and their spouses.
Under the revised proposal, state attorneys general would be able to enforce restrictions preventing covered federal officials from issuing, sponsoring or maintaining significant financial interests in certain digital assets. Exchanges would also face restrictions on listing assets that violate those provisions.
Covered individuals would be required to divest significant financial interests or place them into qualified blind trusts.
Violations could result in civil penalties of $500,000 or 20% of the amount received through a prohibited transaction, whichever is greater.
The provisions would take effect 360 days after enactment, unless implementing regulations are finalized sooner.
Stablecoin Rewards and Community Banks
The revised CLARITY Act also introduces changes involving stablecoin rewards.
The Treasury secretary would be required to establish rules restricting rewards if the secretary determines that community banks are experiencing substantial deposit losses because of stablecoin-related activity.
The authority would expire 18 months after the legislation becomes law, creating a temporary mechanism to address potential effects on smaller financial institutions.
The provision reflects concerns that rapidly expanding stablecoin adoption could alter how consumers and businesses hold money and potentially shift deposits away from traditional banks.
Blockchain Regulatory Certainty Act Gets Broader Protections
The revised proposal also modifies the Blockchain Regulatory Certainty Act, or BRCA.
The legislation would maintain protections preventing certain blockchain developers from being classified as money transmitters or financial institutions under the Bank Secrecy Act.
The revised language would expand those protections to miners and validators, which had previously been excluded.
The proposal would also remove references to Section 1960 of Title 18 of the US Code, which concerns the prohibition of unlicensed money-transmitting businesses.
Additional provisions would strengthen safeguards surrounding affiliate trading and conflicts of interest at digital commodity exchanges, brokers and dealers while clarifying the application of consumer protection laws.
Senate Vote Becomes Key Test
The timing of the revised legislation makes Tuesday’s vote an important test for the bill.
The proposal still requires sufficient support to advance through the Senate, meaning Republican negotiators must convince enough Democrats that the latest changes address their concerns.
Prediction-market expectations remain relatively cautious. Polymarket odds for the CLARITY Act being signed into law during 2026 reached 35% on Monday, the highest level since late July.
The legislation’s prospects will ultimately depend on whether the revised provisions can bridge remaining partisan disagreements and secure the votes needed for further consideration.
Outlook
The revised CLARITY Act represents the latest and potentially most consequential attempt to establish a comprehensive US framework for digital assets. The addition of ethics restrictions, broader blockchain protections and safeguards around stablecoin activity reflects the range of issues now tied to the legislation. Tuesday’s procedural vote will provide an important indication of whether months of bipartisan negotiations have produced enough common ground for the bill to advance.
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