Senate Republicans Send Democrats Final Version of CLARITY Act Text Ahead of Tuesday Vote

Senate Republicans on Sunday circulated an updated draft of the CLARITY Act, pressing for Democratic backing ahead of a procedural vote set for Tuesday at 2:15 p.m. ET. The revised proposal runs 635 pages and is being led by Senate Banking Digital Assets Subcommittee Chair Cynthia Lummis, alongside Agriculture Committee Chair John Boozman and Senate Banking Chair Tim Scott. GOP aides described the release as a final offer, signaling the last set of changes before senators decide whether to advance the bill toward floor consideration. Key changes in the new text Ethics provisions move to center stage. The bill adds new restrictions aimed at limiting certain digital-asset financial interests held by covered federal officials and their spouses. State attorneys general would be granted enforcement authority for these ethics-related limits, including provisions tied to exchanges listing assets that violate the bans. Civil penalties could be steep: violations would carry fines of either $500,000 or 20% of the amount received in a prohibited transaction, whichever is greater. Covered individuals would be required to divest significant digital-asset financial interests or place them in a qualified blind trust. The ethics rules would generally take effect 360 days after enactment, with the possibility of an earlier start if implementing regulations are finalized sooner. Lummis said the draft reflects a year of bipartisan negotiations and includes 126 changes requested by Democrats. She also said the ethics package had been agreed to by President Donald Trump. Stablecoin rewards: Treasury gets conditional, time-limited authority. The updated text directs the Treasury Secretary to develop rules limiting certain rewards if Treasury determines community banks are losing deposits at a substantial scale. That authority would sunset 18 months after enactment. The practical question for market participants is how Treasury would define "substantial" deposit losses and what enforcement approach would accompany any reward limits. The trigger suggests a targeted intervention, though the short sunset window could compress regulatory uncertainty into a defined period. BRCA revisions expand coverage to miners and validators. The draft also updates provisions tied to the Blockchain Regulatory Certainty Act (BRCA). Lummis said the bill maintains protections intended to prevent developers from being treated as money transmitters or financial institutions under the Bank Secrecy Act, and extends similar safe-harbor-style protections to miners and validators, which earlier versions excluded. The revised BRCA also removes references to Section 1960 of Title 18 of the U.S. Code, which addresses unlicensed money transmitting businesses. The change could influence how criminal and compliance interpretations interact with the bill's proposed framework. The updated proposal also includes additional adjustments described as strengthening conflict-of-interest and trading safeguards for digital commodity exchanges, brokers, and dealers, and clarifying the application of consumer protection laws in digital-asset markets. What's next With Tuesday's procedural vote imminent, lawmakers are expected to focus on the new ethics enforcement model—including the role of state attorneys general and the divestiture or blind trust requirement—alongside the BRCA's expanded protections for miners and validators and the time-limited stablecoin reward restrictions tied to Treasury findings on community bank deposits.