Senate Republicans Revise CLARITY Act Ahead of Tuesday's Vote

Senate Republicans unveiled a revised version of the CLARITY Act on Monday, just ahead of Tuesday's vote. The final draft includes over 120 changes requested by Democrats, with key disputes resolved on ethics rules for federal officials, stablecoin-related bank deposit flight, developer protections, and digital commodity intermediaries.

The latest round focuses on four remaining issues: giving state attorneys general a role in enforcing restrictions on covered officials' crypto interests; creating a 'circuit breaker' to restrict rewards available to payment stablecoin holders if substantial deposit flight occurs from community banks; narrowing the scope of developer protections, removing references to 18 U.S.C. 1960 and excluding miners and validators from civil context protection; and tightening exchange rules with stricter guardrails on affiliate trading and conflicts of interest.

Republicans claim that over 126 substantive changes have been incorporated into the bill, with President Donald Trump agreeing to ethics restrictions and Democratic Senators Ruben Gallego and Thom Tillis backing a compromise on developer protections. The final text aims to be 'truly bipartisan' and address concerns raised by Democrats, including stronger provisions for consumer protection, illicit finance, conflicts of interest, and market integrity.