The United States Senate is due to hold a key procedural vote on Tuesday on sweeping cryptocurrency legislation, after Republicans published a revised draft aimed at resolving major disputes but failed to guarantee the 60 votes needed for it to advance.
The Clarity Act would establish the first comprehensive federal framework for the cryptocurrency industry. It would expand the Commodity Futures Trading Commission’s authority while also defining the role of the Securities and Exchange Commission.
Republicans released the latest text late on Sunday after negotiations focused on three issues: President Donald Trump’s crypto-related conflicts of interest, rewards attached to stablecoins and protections for software developers.
Sen. Cynthia Lummis, R-Wyo., one of the main negotiators, urged colleagues to support the bill.
“The Clarity Act is right in front of us and this moment won’t come along again for years,” Lummis said in a post on X. “Let’s take the win and get this done.”
The House passed its version more than a year ago, but the Senate has faced repeated delays over stablecoin rewards, developer protections and ethics provisions.
The revised bill would allow state attorneys general to enforce conflict-of-interest rules applying to public officials. It would also amend the Blockchain Regulatory Certainty Act by removing references to a federal criminal statute, and give Treasury Secretary Scott Bessent power to impose an 18-month “circuit breaker” on stablecoin rewards if payment stablecoins cause substantial deposit outflows.
It remains uncertain whether those changes will secure the 60 votes required to move the legislation forward. Sens. Susan Collins and John Cornyn are considered undecided, according to Punchbowl News, while some Democrats continue to have concerns about the ethics provisions.
TD Cowen’s Washington Research Group, led by managing director Jaret Seiberg, estimates there is a 25% chance the bill becomes law this year. It would still need to return to the House, which is off for the final two weeks of September, meaning a vote there would probably take place after the November elections.
“This is not a negotiated deal,” Seiberg said. “Democrats are being presented with the final product.”
Dispute over Trump ethics rules
Trump’s crypto interests, including wealth linked to World Liberty Financial, run by his sons, and his memecoin, have been a central issue.
The latest draft gives state attorneys general a role in enforcement, but Sen. Elizabeth Warren and other Democrats argue their authority would remain insufficient. They say the Justice Department would still decide whether action could be taken against public officials, including the president.
Sen. Mark Warner said the changes did not go far enough.
“There’s been some movement. I don’t think the ethics provision is near enough,” Warner told Semafor’s Burgess Everett.
Sens. Ruben Gallego and Angela Alsobrooks have said they will not support the bill without ethics protections.
Developer and bank concerns
Coin Center said the revised Blockchain Regulatory Certainty Act was progress but “stops short of resolving the essential criminal law issue”. One industry source said critical protections for non-controlling developers had been removed, while another said the industry would have to accept the change.
The stablecoin proposals have also drawn criticism from banks. Eight banking groups, including the American Bankers Association and the Bank Policy Institute, said a circuit breaker would only operate after significant deposits had already left community banks.
Bessent said he would use the powers if necessary, while White House crypto adviser Patrick Witt asked: “What more do you want?”
