The CLARITY Act is advancing toward a key Senate vote as lawmakers remain divided over several provisions in the cryptocurrency regulation bill. Senate Democrats submitted a counterproposal to Republicans late Monday, following the release of a new Republican draft the previous day, with the first scheduled Senate vote set for Tuesday afternoon.
Core Areas of Disagreement
Much of the ongoing dispute centers on revised ethics language in the bill. Concerns have been raised about a provision involving the Office of Government Ethics that could allow senior government officials to maintain existing crypto business connections.
Banking groups have also raised objections, focusing on the bill's rules for stablecoin rewards. Eight trade associations submitted their concerns to Senate leaders John Thune and Chuck Schumer on Monday, requesting several changes to the legislation.
State officials have also opposed the measure. New York Attorney General Letitia James and 17 other state attorneys general urged senators to reject the bill, warning that federal preemption could weaken state enforcement authority over anti-fraud and investigative powers. They also expressed concern that the SEC could be granted broad preemptive power to determine where rules apply.
White House and Republican Support
Despite the resistance, Patrick Witt, the White House's top crypto advisor, characterized the latest version as the "best and final offer." He spoke at a Solana Policy Institute summit in Washington and said the administration had worked to address concerns that emerged during negotiations.
Senator Cynthia Lummis, one of the Republicans leading negotiations, stated Monday that Democrats were seeking additional concessions but maintained that the legislation remained ready to move to a vote. Witt expressed confidence about the Senate beginning its consideration of the bill, noting that securing the required 60 votes would ultimately be a political matter given what he described as the bill's bipartisan nature.
