Senate Republicans Finalize Clarity Act with 126 Democratic Changes

Senate Republicans have finalized their version of the Clarity Act, incorporating 126 changes requested by Democrats. The revised bill aims to clarify regulations around cryptocurrencies and digital assets.

The updated bill retains civil safeguards but drops criminal protections under Section 1960 for blockchain developers. President Donald Trump accepted about 80% of an ethics proposal developed by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego, requiring federal officials to divest substantial financial interests in cryptocurrency issuers or place them in a blind trust.

The stablecoin section introduces a circuit breaker designed to address concerns about deposit flight from community banks. Treasury Secretary Scott Bessent could intervene if regulators find evidence that stablecoin rewards are causing widespread deposit outflows.