CLARITY Act Faces Tuesday Senate Vote: Senate Republicans Release ‘Final’ Draft With Trump-Backed Ethics Deal

• President Trump also agreed to the limits on measured crypto-related financial interests, while the ethics rules would also apply to federally elected officials, judges, and their spouses. 
• The revised text also narrows developer protection and adds a stablecoin yield surcharge that would let regulators respond to large deposit outflows from community banks. 
• The Senate votes on Tuesday on whether to advance the bill, as Circle and Coinbase could benefit if it ultimately passes. 

Senate Republicans have reportedly put forward a revised 635-page version of the Digital Asset Market Clarity Act, commonly known as the CLARITY Act, late Sunday, calling it their "last, best, and final" offer to Democrats. This comes ahead of an important procedural vote this week that could determine the fate of the crypto market structure bill in Congress. The new draft includes 126 substantial changes, including new ethics restrictions, narrower protections for blockchain developers, and a proposed circuit breaker for stablecoin illiquidity.

The revised text was released by Digital Assets Subcommittee Chair Cynthia Lummis (R-WY), alongside Banking Chairman Tim Scott (R-SC) and Agriculture Chairman John Boozman (R-AR). Lummis said it reflected more than a year of bipartisan negotiations and 126 substantive changes Democrats requested. 

The Senate votes at 2:15 pm ET Tuesday on cloture for the motion to proceed, which requires 60 votes. 

President Trump Accepts Ethics Limits 

The revised ethics title captures roughly 80% of the counterproposal of Senator Thom Tillis (R-NC) and Senator Ruben Gallego (D-AZ) sent to the White House in late July. President Donald Trump has also agreed to either divest substantial crypto-related financial interest or place it in a blind trust. 

“President Trump voluntarily agreed to unprecedented ethics restrictions, holding every federally elected official, judge, and their spouses to some of the toughest ethics restrictions in U.S. history. This text is truly bipartisan and includes more than 120 of Democrats’ demands. A no vote on Tuesday means opposing real ethics reforms on politicians’ personal investments, handing American leadership in digital assets to our foreign competitors, and leaving Americans with zero protections in the digital asset markets. Democrats got what they wanted; now they need to take yes for an answer.”

Cynthia Lummis, Republican Senator from Wyoming 
 

Developer Shield Gets Narrower 

The Blockchain Regulatory Certainty Act (BRCA) provision now covers only the Bank Secrecy Act (BSA) and civil enforcement. Republicans removed language that would have shielded developers from criminal charges, including under 18 U.S.C. 1960. Prosecutors used the statute against the Tornado Cash and Samourai Wallet developers.

Stablecoin Yield Gets A Potential Circuit Breaker

The draft also adds a circuit breaker for stablecoin yield. Tillis first floated the idea in July. It would let federal regulators step in if money starts moving out of community banks and into stablecoins in large amounts. Treasury Secretary Scott Bessent would make that call. 

The agriculture title got tighter too. As per the report, it adds new limits on vertical integration and affiliate trading at digital commodity exchanges, brokers, and dealers. The report also states that developer protections do not exempt anyone from derivatives laws. 

After the text came out, Senate Minority Leader Chuck Schumer (D-NY) called his caucus together on Sunday evening. 

COIN, CRCL In Focus 

Circle Internet Group (CRCL) and Coinbase (COIN) could benefit if the bill passes. On Stocktwits, retail sentiment around CRCL and COIN remained in the ‘extremely bearish’ zone and ‘bearish’ zone, respectively, over the past day.

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