Senate Republicans Circulate Updated Clarity Act Ahead of Crucial Vote

A new version of the Clarity Act has been circulated by Senate Republicans ahead of their return from recess next week. The bill, which aims to clarify crypto regulations, includes tweaks to how it addresses decentralized finance (DeFi) and traditional finance firms. Despite these changes, key Democratic senators have expressed concerns that they will not support the bill unless an ethics agreement is included to restrict President Donald Trump and other senior government officials from profiting from crypto businesses.

The bill's passage depends on a cloture vote scheduled for Tuesday (Sept. 15), which requires 60 votes to succeed. This means it needs support from both parties, as the current majority is not sufficient to pass the legislation. Even if the motion to proceed gets the required 60 votes, it would only allow the Senate to begin debate on the crypto bill, leaving little time for further action before the Nov. 3 midterm elections.

Sen. Cynthia Lummis (R-Wyo.) has expressed optimism about the updated Clarity Act text, citing over 100 changes requested by Democrats and the inclusion of provisions addressing Native American concerns about prediction markets. The Blockchain Association's Summer Mersinger and the Digital Chamber's Cody Carbone have also welcomed the release of the new bill, urging the Senate to act now or risk ceding U.S. leadership in digital asset and blockchain innovation.

However, not all parties are supportive of the Clarity Act. The American Bankers Association has raised concerns about the bill's provisions governing stablecoin interest, yield, and rewards programs, warning that ambiguity in these areas could lead to a flight of deposits to stablecoins with real-world consequences.