Final CLARITY Act Draft Heads to Senate Cloture Vote With 126 Democratic Changes

Summary

• Republicans added 126 Democratic changes to the final CLARITY Act draft before a Senate cloture vote requiring bipartisan support Tuesday.
• New ethics provisions cover elected officials and spouses, while state attorneys general gain authority to enforce certain conflict-of-interest rules nationwide.
• Stablecoin safeguards protect community bank deposits, while limited congressional time creates obstacles for debate, amendments, House approval, and final passage.

Senate Republicans released the final CLARITY Act draft with 126 substantive changes requested by Democratic lawmakers. According to Senators Cynthia Lummis, John Boozman, and Tim Scott, the revisions reflect extensive negotiations across party lines. If senators approve cloture, Republicans will offer the revised language as a substitute amendment to H.R. 3633.

Republicans incorporated most elements from the bipartisan proposal developed by Senators Thom Tillis and Ruben Gallego. Those rules would cover presidents, vice presidents, members of Congress, federal employees, judges, and their spouses.

State attorneys general would also receive authority to enforce certain conflict-of-interest requirements involving public officials. However, the text does not extend those restrictions to officials’ children or other relatives.

President Donald Trump has largely accepted the proposed restrictions, according to reporting cited during negotiations. Meanwhile, his 2025 financial disclosure reported more than $1.4 billion in crypto-related income. His businesses include World Liberty Financial, USD1, and the TRUMP memecoin.

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Stablecoin Safeguard Targets Community Bank Deposit Risks

Another major change gives the Treasury secretary temporary authority to restrict stablecoin rewards during significant community bank withdrawals. That circuit breaker would remain available for 18 months following enactment.

Banks argue that stablecoin rewards could pull deposits from local institutions and weaken their lending capacity. Although the bill prohibits interest on idle stablecoin balances, platforms could still provide rewards linked to stablecoin use.

Consequently, banking groups view the Treasury power as an emergency mechanism against severe deposit flight. Additionally, the draft narrows money-transmission registration requirements for certain software developers and creates a civil safe harbor.

Cloture Vote Leaves Narrow Path for Final Passage

Tuesday’s cloture vote presents the legislation’s first major obstacle and requires support from 60 senators. Republicans hold 53 seats, meaning they need at least seven Democrats or independents if every Republican supports cloture.

However, a successful vote would only open debate, not secure final passage. Moreover, the House must approve the Senate substitute before sending it to President Trump. Congress faces a compressed calendar before the November 3 midterm elections. The Senate plans a state work period beginning October 5, while House leaders canceled two late-September legislative weeks.

Lummis warned that failure during this Congress could delay comprehensive market structure legislation until 2030. Prediction market traders reacted positively to the compromise, lifting passage odds from roughly 22% to 32%. Still, the 60-vote threshold leaves the bill dependent on bipartisan support despite Republicans’ concessions. The final draft therefore moves the CLARITY Act from prolonged negotiations to a consequential Senate test.

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