Trump Administration Concedes on CLARITY Act Amid Bipartisan Support

The Trump administration has made significant concessions on the CLARITY Act, a bipartisan bill aimed at defining digital assets as securities or commodities. The revised version of the bill includes approximately 126 changes requested by Democrats, including restrictions on crypto interests held by elected officials and their spouses.

One of the key concessions is the inclusion of a mechanism allowing the Treasury Secretary to intervene if stablecoins trigger massive outflows from bank deposits. This 'circuit breaker' is designed to protect smaller and regional banks from the potential risks associated with payment stablecoins.

The final version of the bill also grants state attorneys general authority to participate in the enforcement of ethics rules, moving away from exclusive control by the federal Department of Justice. Senators Lummis, Boozman, and Scott have presented the document as the definitive compromise after more than a year of negotiations.

The bill now faces its most demanding test: clearing the 60-vote threshold in the Senate next Tuesday. The outcome will determine whether the concessions accumulated during the Trump administration are sufficient to bring the bill to a final vote.