CLARITY Act Senate vote on Tuesday: what to expect

Senate Republicans have released a revised 635-page version of the Digital Asset Market Clarity Act, known as the CLARITY Act, in what they describe as their final offer to Democrats ahead of a key procedural vote on Tuesday.

The bill includes 126 substantive changes requested by Democrats, along with new ethics restrictions, narrower protections for blockchain developers and a proposed circuit breaker for stablecoin rewards.

The Senate is scheduled to vote at 2:15 pm ET on cloture for the motion to proceed, a step that requires 60 votes.

The legislation aims to establish a regulatory framework for cryptocurrencies and other digital assets.

However, disagreements over ethics rules, stablecoin rewards and banking protections have left its prospects uncertain.

Revised bill seeks to address Democratic concerns

The updated text was released by Digital Assets Subcommittee Chair Cynthia Lummis, Banking Chairman Tim Scott and Agriculture Chairman John Boozman.

Lummis said the revisions reflected more than a year of bipartisan negotiations and incorporated 126 changes requested by Democrats.

The ethics section includes much of a proposal developed by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego.

President Donald Trump has also agreed to either divest substantial crypto-related financial interests or place them in a blind trust.

The proposal would impose restrictions on federally elected officials, judges and their spouses.

It would also allow state attorneys general to enforce ethics requirements involving federal officials.

Lummis described the bill as a bipartisan compromise and urged Democrats to support it.

She argued that rejecting the measure would leave Americans without stronger protections in digital asset markets and risk weakening US leadership in the sector.

However, some Democrats remain opposed.

Senator Chris Van Hollen said the bill continued to have significant problems and argued that it was being presented as consumer protection legislation despite unresolved concerns.

Developer protections and stablecoin rules change

The revised bill narrows the protections provided under the Blockchain Regulatory Certainty Act.

The provision now covers only the Bank Secrecy Act and civil enforcement.

Republicans removed language that would have protected blockchain developers from criminal charges, including charges under 18 U.S.C. 1960.

Prosecutors have previously used that statute against developers associated with Tornado Cash and Samourai Wallet.

The bill also introduces a potential circuit breaker for stablecoin rewards.

Under the proposal, Treasury Secretary Scott Bessent could direct federal regulators to intervene if substantial amounts of money move from community banks into stablecoins.

The change is intended to address concerns from banks, which argue that interest-like payments or rewards on stablecoins could encourage deposit flight and reduce funds available for local lending.

The agriculture section would also introduce limits on vertical integration and affiliate trading at digital commodity exchanges, brokers and dealers.

The bill states that developer protections would not exempt anyone from derivatives laws.

Vote remains uncertain as banks oppose bill

The Senate Banking Committee approved the CLARITY Act in May, but Senate leaders have struggled to secure the 60 votes needed to advance it.

With full attendance, at least seven Democrats would need to support the measure.

Senate Majority Leader John Thune has presented Tuesday’s vote as a procedural step rather than a final vote on passage. The measure could still be amended if senators agree to move it forward.

A Democratic aide said some Democrats may support the motion to keep negotiations alive, particularly because further changes could be considered before final passage. The White House has also indicated that additional concessions could be offered if the Senate clears the preliminary vote.

Crypto industry executives have expressed confidence in the legislation. Coinbase CEO Brian Armstrong said regulation would emerge regardless of the vote and argued that the Securities and Exchange Commission and Commodity Futures Trading Commission were prepared to issue rules if the bill failed.

However, banking groups continue to oppose the current version.

The American Bankers Association and nearly 80 other banking organisations urged Senate leaders to strengthen restrictions on stablecoin interest, yield and rewards.

The groups warned that weak protections could threaten community-bank deposits and local lending to small businesses, farmers and families. The updated bill has not fully resolved those concerns.

Circle and Coinbase companies could benefit if the legislation passes, and both companies’ shares traded higher in premarket trading on Monday.

Nevertheless, the outcome of Tuesday’s vote remains unclear, and failure could leave lawmakers with limited time to revise and pass the bill before the end of the congressional session.