Senate Republicans released the final text of the Clarity Act on Sunday, incorporating changes requested by Democrats and substantially revising ethics provisions that had been a point of contention. The revised bill spans 635 pages, five pages longer than the September 10 draft.
Senators Cynthia Lummis, John Boozman, and Tim Scott stated that the text reflects more than a year of bipartisan negotiations, with their office identifying 126 substantive edits requested by Democrats. Senators are scheduled to vote Tuesday afternoon on cloture for the motion to proceed, which requires 60 votes to advance.
Ethics Division Substantially Rewritten
The ethics section underwent major revisions in the final draft. Key changes include:
- A new ban on holding a significant financial interest, defined as $15,000 or more of equity in any business deriving a plurality of its revenue from issuing or sponsoring tokens within the past three years, with mandatory divestment or placement in a blind trust. The September draft contained no such holding ban.
- Extended coverage to presidents-elect, vice presidents-elect, and members-elect prior to being sworn in.
- Increased penalties, shifting from a 10 percent cap to a 20 percent floor, adjusted for inflation, applying to both the interest and the transaction.
- Expanded standing for state attorneys general to pursue enforcement actions. The earlier draft explicitly barred them and private plaintiffs.
The new version deletes the 2029 sunset provision and removes the severability clause. However, the ethics requirements remain limited to spouses and do not extend to children and dependents, narrower than federal disclosure requirements for other officials.
Changes Beyond Ethics Provisions
Outside the ethics title, the legislation modifies several other provisions. The exchange proprietary trading rule narrows its exceptions from activities in support of the business to those deemed necessary under new regulations from the Commodity Futures Trading Commission.
Exchanges and digital wallets face new requirements: if the Treasury Department determines within 18 months that community bank deposits are flowing into stablecoins, it must establish rules limiting yields to rates similar to bank interest, creating potential implications for exchange rewards programs.
The definition of network token expands to encompass digital assets rather than digital commodities. States retain authority to enforce deceptive practices rules absent federal preemption. Software developers gain protection against money transmitter registration requirements but lose explicit criminal liability protections included in the earlier version.
Republicans Frame Vote as Final Offer
Senator Lummis stated that President Trump voluntarily agreed to the ethics restrictions, characterizing them as among the toughest in U.S. history for federal officials, judges, and their spouses. Republicans have indicated this represents their final offer before Tuesday's vote and are urging Democrats to accept the compromise they negotiated.
The outcome of Tuesday's cloture vote will determine whether the revised ethics provisions secure the seven additional Democratic votes Republicans need for passage.
