Senate Republicans Revise Crypto Bill Ahead of Make-or-Break Vote
Senate Republicans released a revised cryptocurrency bill on Monday, incorporating 126 Democratic changes, but its fate hinges on a procedural vote Tuesday.
U.S. Senate Republicans on Monday unveiled a revised draft of major cryptocurrency legislation, aiming to address Democratic concerns over ethics provisions and banking industry worries that the bill could harm lending. The updated text comes just ahead of a critical procedural vote on Tuesday that could determine the bill's future.
The Clarity Act, which seeks to establish a regulatory framework for cryptocurrencies, had been stalled amid objections from Democrats and some Republicans who argued it lacked sufficient safeguards against illicit finance and could destabilize the banking system by increasing competition for deposits.
Republican Senators Cynthia Lummis of Wyoming, John Boozman of Arkansas, and Tim Scott of South Carolina said the new draft incorporates 126 substantive changes requested by Democrats. However, it remains uncertain whether the bill can secure the 60 votes needed to advance in Tuesday's procedural vote. The banking industry continues to oppose the text, according to an industry official.
"After a year of intense daily bipartisan negotiations, this bill is ready," Lummis said in a statement. "Democrats got what they wanted; now they need to take yes for an answer."
Democrats have pushed for stricter restrictions on public officeholders profiting from their own crypto ventures, a move partly aimed at President Donald Trump's World Liberty Financial. Trump disclosed in June that he had earned $1.4 billion from his crypto activities.
The revised text includes rules proposed by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego, granting state attorneys general greater enforcement power. "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," Lummis said. Spokespeople for Gallego and Tillis did not immediately respond to requests for comment on whether they endorse the new text.
The draft also introduces new protections for bank deposits, consumer safeguards on affiliate trading, clarifications on state consumer protection laws, and protections for software developers, the Republican senators said.
Nevertheless, the banking industry remains concerned about language that would allow crypto firms to offer rewards on dollar-backed stablecoins, the industry official said.
The crypto industry has spent hundreds of millions of dollars campaigning for the Clarity Act, arguing it will provide legal certainty for crypto companies, and mounted a final lobbying push in states over the August recess.