Senate Republicans unveiled a substantially revised draft of the Clarity Act on Thursday, setting the stage for a September 15 procedural vote that could shape cryptocurrency regulation policy. The 630-page revision was distributed by Wyoming Senator Cynthia Lummis alongside Republican colleagues and incorporates over 114 amendments requested by Senate Democrats.
The September 15 vote represents a cloture motion requiring 60 affirmative votes to proceed, demanding substantial bipartisan cooperation between Republicans and Democrats.
Key Regulatory Changes
The revised draft introduces regulatory frameworks for what the bill terms non-decentralized finance trading protocols—platforms where individuals or centralized groups maintain authority to control or substantially modify protocol operations. Such entities would face mandatory registration requirements with the Commodity Futures Trading Commission.
The legislation tasks both the CFTC and Treasury Department with developing detailed regulatory guidelines for these platforms. The scope of DeFi-related provisions has been significantly restricted, now applying exclusively to spot and cash-based digital commodity transactions.
The revised text also provides enhanced clarity on credit union involvement in cryptocurrency-related activities.
Ethics Framework Remains Contentious
Despite the revisions, the legislation continues to encounter significant resistance from Democratic lawmakers who contend the ethics provisions remain inadequate. The existing ethics framework prohibits government officials and their spouses from creating or promoting digital assets, with Justice Department oversight. This provision expires in January 2029.
Democratic senators have expressed concern about the adequacy of this language. Republican Senator Thom Tillis indicated that White House participation remains necessary to develop a bipartisan ethics framework.
Administration and Industry Pressure
White House crypto adviser Patrick Witt encouraged all senators to support the procedural vote, allowing the legislative process to advance. Treasury Secretary Scott Bessent similarly pressured legislators to move the bill forward, stating that blocking its progress would demonstrate America's unwillingness to maintain leadership in the digital asset sector.
The American Bankers Association, joined by 77 state banking associations, submitted correspondence to Congress this week advocating for stricter limitations on stablecoin reward programs.
Senator Lummis has vigorously championed the legislation, contending that without the Clarity Act's passage, the CFTC and SEC will independently establish digital asset regulations regardless.
