Democrats Prepare Counterproposal as CLARITY Act Heads Towards Cloture Vote
Senate Democrats are preparing a counterproposal to the CLARITY Act just ahead of tomorrow's cloture vote, which is scheduled for 2:15 pm. Senator Ruben Gallego is leading the charge with the counterproposal, and it follows a meeting between Gallego and Senate Minority Leader Chuck Schumer earlier today.
The latest text of the crypto bill includes compromises on areas such as ethics provisions and a 'circuit breaker' clause to address deposit flight concerns. However, Democrats are still unsatisfied with the final text, particularly regarding the ethics provision. Some Democrats have argued that the provision is insufficient, even though it enables state Attorneys General to enforce it.
A coalition of Attorneys General led by New York's AG Letitia James has also opposed the latest CLARITY Act text, arguing that it will make it harder for states to take action against crypto fraud. Banking groups have pushed back on the circuit breaker language, claiming it is not a safeguard against their deposit flight risk concerns.