Ahead of a pivotal Senate procedural vote, Republican leaders released the updated draft of the Digital Asset Market Clarity Act (CLARITY Act). The updated draft incorporates ethics restrictions accepted by President Donald Trump that extend to himself, federally elected officials, judges, and their spouses. Crucially, the revised text gives state attorneys general a role in enforcing these conflict-of-interest provisions, resolving a core dispute that had stalled the market structure bill since last summer.
The ethics negotiations intensified following concerns regarding Trump’s personal crypto ventures and holdings. While the White House previously supported ethics guardrails, Senate Democrats resisted giving the Department of Justice sole enforcement authority.
The latest draft addresses these demands by establishing concurrent state level enforcement mechanisms, alongside software developer protections that shield developers from money transmission registration under the Blockchain Regulatory Certainty Act.
Banking Guardrails and the High-Stakes Cloture Threshold
To mitigate concerns raised by regional banking advocates regarding potential deposit flight toward yield-bearing payment stablecoins, the finalized text grants the Treasury Secretary authority to intervene against capital movement out of traditional banks.
Provisions added through the Senate Agriculture Committee clarify the application of state consumer protection standards, impose affiliate trading guardrails, and protect decentralized software creators without expanding derivatives jurisdiction.
The immediate battle centers on a procedural cloture vote. Invoking cloture requires a 60-vote supermajority. With Republicans holding 53 seats, the measure requires support from at least seven Democrats or independents. If cloture passes, the text will replace the previously House-passed version as an Amendment in the Nature of a Substitute.
While key Senate sponsors emphasize that the draft incorporates over 120 Democratic requests and maintains backing from major financial institutions, leading Democratic negotiators have yet to publicly endorse the final text ahead of the vote.
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