Republicans Release Final Clarity Act Proposal Amid Senate Debate

Senate Republicans have released their final proposal for the CLARITY Act, a bill aimed at regulating digital assets and promoting blockchain adoption. The 635-page proposal includes several key changes to the original text, including revised ethics provisions and updated regulations on stablecoins.

The new proposal would require 60 votes to open debate in the Senate, meaning Republicans need the support of all 53 Republican senators and at least seven Democratic caucus members to move forward. Senate Minority Leader Chuck Schumer convened Democrats on Sunday evening to discuss the text, but as of September 14, no decision had been made.

The CLARITY Act would create registration provisions for digital commodity exchanges, brokers, and dealers, while also giving the CFTC jurisdiction over covered spot digital commodity markets. The bill would leave SEC jurisdiction over securities and investment contracts intact, but include agriculture provisions limiting affiliates' trading and preserving state consumer protection laws.

The proposal has been met with mixed reactions from lawmakers, with some criticizing the lack of transparency in crypto transactions. Despite this, Senate Majority Leader John Thune scheduled a cloture motion to proceed to H.R. 3633 for a vote on Tuesday at 2:15 p.m. Eastern, which could lead to further debate and amendments.