CLARITY Act counterproposal is now in motion. Currently, Senate Democrats are preparing it. However, they remain dissatisfied with the bill’s crypto ethics provisions. Therefore, they will send it hours before a key procedural vote.
Why the CLARITY Act counterproposal matters
Specifically, Senate Democrats are reportedly preparing a counterproposal. Additionally, they are responding to Republicans’ revised CLARITY Act text. Furthermore, GOP lawmakers released it Sunday. Moreover, they called it their “last, best and final offer.”
Additionally, Democrats met in Senate Minority Leader Chuck Schumer’s office on Monday. Furthermore, Politico reported the meeting. However, some Democrats remain unsatisfied with the ethics language. Consequently, they are drafting a counterproposal.
Meanwhile, Senator Mark Warner said, “The Democrats who’ve been working on this in good faith are sending a counterproposal.” Additionally, he spoke to Politico as he exited the meeting.
Consequently, the counterproposal comes ahead of a crucial Senate procedural vote on Tuesday. Specifically, that vote will determine whether the Senate can advance the bill. Therefore, if it advances, it moves toward floor consideration.
CLARITY Act odds fall to 16%
Meanwhile, Polymarket odds for the CLARITY Act becoming law fell sharply on Monday. Previously, they had spiked the day before. Initially, traders saw the revised Republican proposal as positive. For example, the expanded ethics provisions sent odds to 35%. However, confidence was dashed as reservations mounted. As a result, odds fell back as low as 19% on Monday.
Furthermore, Warner reportedly said the revised ethics provision was not “near enough.” Meanwhile, Democrats involved in negotiations began preparing a counterproposal.
Additionally, Republicans need 60 votes to advance the bill. Consequently, failure on Tuesday could stall the legislation. Specifically, the bill would determine how the SEC and CFTC divide oversight. In short, it would govern the US crypto market.