Republicans Submit Revised CLARITY Act in Last-Ditch Effort for Democratic Support

US Senate Republicans have released revised text of the CLARITY Act, aiming to win Democratic support ahead of a procedural vote scheduled for Tuesday at 2:15pm ET. The updated 635-page proposal includes notable changes to ethics rules for federal officials and expands related provisions touching stablecoin rules and the Blockchain Regulatory Certainty Act (BRCA).

The bill's timing is close, with the procedural vote intended to determine whether the Senate can move the measure toward floor consideration. Republican aides have characterized Sunday's release as a 'final offer' to Democrats, signaling a last round of adjustments before lawmakers decide whether the text can advance.

Key takeaways include new ethics provisions that would restrict federal officials and their spouses from holding or engaging in certain significant digital-asset financial interests, with state attorneys general gaining enforcement authority for those restrictions. Civil penalties in the ethics framework could reach $500,000 or 20% of the amount received in a prohibited transaction, whichever is greater.

The revised BRCA would extend 'safe harbor' style protections beyond prior exclusions to cover miners and validators, while removing references tied to unlicensed money-transmitting offenses. Stablecoin-related provisions would require Treasury to introduce restrictions on certain rewards if community banks are losing deposits at a substantial scale, with that authority set to expire 18 months after enactment.