Senate Democrats sent a counteroffer on the CLARITY Act to Republican negotiators late Monday, just hours before a procedural vote scheduled for Tuesday at 2:15 p.m. ET. The cloture vote requires 60 votes to advance, necessitating Democratic or independent support alongside the 53 Republican seats.
Republicans released an updated draft ahead of the vote that incorporates 126 substantive changes requested by Democrats during months of negotiations. The revised text addresses rules on government officials' crypto holdings, stablecoin rewards, and protections for blockchain software developers.
Ethics Rules and Enforcement
President Trump agreed to revised ethics language that would apply to the president, vice president, members of Congress, federal judges, and certain family members. The new rules would place conditions on those officials' digital asset holdings, including potential requirements for divestment or qualified blind trust arrangements.
The revised bill grants state attorneys general the power to bring civil enforcement actions tied to the ethics rules. However, some Democratic senators contend the changes remain insufficient.
Republican Senators Cynthia Lummis, Tim Scott, and John Boozman have led negotiations on the GOP side. White House adviser Patrick Witt stated Monday that the administration believes Republicans have addressed most Democratic concerns, characterizing remaining issues as minor.
Banking and State Authority Disputes
Stablecoin rewards practices remain a separate point of contention. The bill would allow the Treasury secretary to determine whether stablecoin reward practices are drawing deposits away from community banks. Treasury would receive 18 months after the bill becomes law to conduct this study, with regulators directed to impose restrictions if harm is found.
The American Bankers Association argues this timeline is too slow, warning that deposits could be lost before regulators take action. Nearly 80 state banking associations joined national banking groups in requesting stronger stablecoin language before the vote in a September 10 letter to senators.
New York Attorney General Letitia James led a group of 17 other state attorneys general in asking Congress to protect state authority over crypto fraud and securities cases. They seek to maintain state registration and enforcement powers, a request separate from the new ethics enforcement authority being granted to attorneys general under the revised bill.
A successful cloture vote would permit the Senate to begin formal debate and consider amendments, but would not pass the bill itself.
