Senate CLARITY Act Sees 635-Page Revision Before Tuesday Vote

The CLARITY Act now spans 635 pages following a final round of revisions. Senate Republicans added these changes to secure Democratic support for a procedural vote scheduled for Tuesday.

The updated text introduces an ethics framework that restricts public officials from issuing or sponsoring digital assets. This addition directly addresses concerns raised by Democratic lawmakers regarding conflicts of interest in the crypto sector.

Ethics Rules Target Official Holdings

The new provisions require federally elected officials and judges to divest substantial crypto-related financial holdings. Alternatively, these assets must be moved into a blind trust. This standard is described as some of the toughest ethics restrictions in US history.

Enforcement authority for these rules is shared between the Department of Justice and state attorneys general. This joint oversight structure resolves a previous objection by Democrats who opposed exclusive federal enforcement. Senate Banking Committee Chair Cynthia Lummis stated that Democrats received their desired protections.

Regulatory Scope And Enforcement Adjusted

The Blockchain Regulatory Certainty Act has been narrowed to cover Bank Secrecy Act violations and civil enforcement. Language that would have extended these protections to criminal proceedings under Section 1960 has been removed from the text.

Miners and validators are now explicitly included under the revised regulatory protections. This change clarifies their legal standing within the new market structure framework. The revisions aim to reduce legal uncertainty for participants in the cryptocurrency infrastructure.

Stablecoin Safeguards And Industry Support

A circuit breaker mechanism has been added to the stablecoin yield section. This tool allows federal regulators to intervene if stablecoin activity causes significant withdrawals from community banks. The provision was first proposed by Senator Tillis in July.

Coinbase CEO Brian Armstrong stated that the bill is ready for approval. He confirmed that the company’s primary concerns have been addressed in the final text. According to GN markets/crypto (en-US), industry leaders now support the legislation ahead of the Senate vote.