CLARITY Act final text was released by Senate Republicans. Senator Cynthia Lummis confirmed the news. President Trump also agreed to new ethics provisions.
Why the CLARITY Act final text matters
Republican Senators Lummis, John Boozman, and Tim Scott released the text. The announcement came on September 14. Lummis said the bill is ready for a Senate cloture vote Tuesday. This follows over a year of bipartisan negotiations. It also includes 126 substantive changes requested by Democrats.
President Trump voluntarily agreed to new ethics provisions. These include the Tillis-Gallego bipartisan ethics counteroffer. The provisions also cover state attorneys general’s role in enforcement. Additionally, they grant new authority to the Treasury Secretary. This authority aims to prevent deposit flight tied to stablecoins.
“President Trump voluntarily agreed to new ethics provisions,” Lummis said. The rules would hold every federally elected official to tough restrictions. Judges and their spouses would also face these rules.
She warned that a no vote on Tuesday means opposing ethics reforms. That would leave Americans with zero protections in crypto markets. Trump and Republicans aim to keep American leadership in crypto innovation.
“Democrats got what they wanted; now they need to take yes for an answer,” Lummis added. Boozman and Scott also commented on the text. The bill aims to protect Americans’ money and keep innovation in America. It also seeks to empower law enforcement and strengthen national security.
As previously reported, Senate Democrats held a meeting on Sunday. Senate Minority Leader Chuck Schumer called the caucus meeting. This came after Chris Larsen urged Democrats to pass the bill.
Other changes in the crypto bill
The text contains changes to several sections. These include the Blockchain Regulatory Certainty Act and stablecoin yield. The so-called “Ag title” was also modified. Republicans call it their “last, best and final” offer. This comes ahead of Tuesday’s Senate cloture vote.
Notably, the BRCA provision was narrowed to the Bank Secrecy Act. It now applies to civil enforcement only. The bill removed language extending protections to criminal cases.
On stablecoin yield, the text added “circuit breaker” language. This allows federal regulators to intervene. They could act if there was evidence of deposit flight. This would protect community banks from losing deposits to stablecoins.
Moreover, the updated text adds tighter guardrails around vertical integration. This covers affiliate trading and conflicts of interest. It applies to digital commodity exchanges, brokers, and dealers. It also clarifies that state consumer protection laws still apply.
Reactions to the CLARITY Act text
The crypto industry reacted positively. Many called it a potential breakthrough after months of deadlock. Some said Trump agreeing to state AGs’ role was a major development.
The crypto community now urges Senators to pass the bill. Major financial institutions supported it. These include BlackRock, Fidelity, Franklin Templeton, and Goldman Sachs. SoFi and Charles Schwab also backed the bill. Law enforcement organizations also supported it. These include the National Fraternal Order of Police.
Patrick Witt is President Trump’s crypto advisor. He said the White House and Senate Republicans responded to Democrats’ requirements. He added that “it’s time to pass this bipartisan bill” after more than a year of negotiations.
Polymarket odds of the CLARITY Act becoming law jumped to 34%. This followed the release of the new text and Trump’s agreement to ethics provisions.
