CLARITY Act Opponents Widen Resistance Ahead of Crucial Senate Vote
The CLARITY Act, a landmark crypto market-structure bill, faces opposition from various groups just hours before its make-or-break Senate vote. Despite incorporating 126 substantive changes requested by Democrats and new provisions to resolve disputes over ethics, stablecoin rewards, developers, and prediction markets, the revised text has yet to win over several of its most vocal critics.
Banking groups have expressed concerns that new protections against deposit flight would act too late, while Democrats challenged the strength of ethics restrictions involving President Donald Trump. The disagreements raise the stakes for Tuesday's cloture vote, which will determine whether the Senate can begin considering the legislation.
New York Attorney General Letitia James led a bipartisan coalition of 17 other attorneys general opposing the bill over its impact on state enforcement. They warned that CLARITY could weaken state registration and anti-fraud powers while giving the Securities and Exchange Commission (SEC) broader authority to preempt state rules.