Senate GOP Releases Final Clarity Act Draft; Trump Agrees to Ethics Restrictions
Final Draft Released Amid Ethics Agreement
Senate Republicans on Sunday night released the final draft of the Digital Asset Market Clarity Act (H.R. 3633), a bill to regulate crypto markets. The release comes after President Donald Trump agreed to most ethics provisions in the bill.
The draft incorporates 126 substantive changes requested by Democrats, including rules on ethics for public officials. A procedural vote is scheduled for Tuesday, September 15.
Key Provisions in the Draft
- The ethics rules cover public officials, their spouses, and elected officials, but do not limit other family members like children.
- The bill gives the Treasury secretary authority to impose a circuit-breaker on stablecoin rewards, which are payments for using digital tokens, to protect community banks from large deposit outflows for 18 months.
- It limits platforms from paying interest on idle stablecoins but allows rewards for active use.
- Other changes narrow money-transmission registration for certain software developers and add consumer protection clarifications.
Lummis, Boozman, and Scott's Statement
Senators Cynthia Lummis, John Boozman, and Tim Scott released the text, stating it reflects most of the Tillis-Gallego ethics proposal. This proposal gives state attorneys general a role in enforcing conflict-of-interest rules for officials.
Lummis said, "President Trump voluntarily agreed to unprecedented ethics restrictions, holding every federally elected official, judge, and and their spouses to some of the toughest ethics restrictions in U.S. history."
AP Report and Banking Industry Response
The Associated Press earlier reported that Trump had largely agreed to the ethics language. The president and his family have faced scrutiny over their crypto businesses, including World Liberty Financial and the TRUMP memecoin.
Rob Nichols, president and CEO of the American Bankers Association, commented on the stablecoin provision, saying bankers had made the case to senators that local deposits are vital for community lending.
Confirmed Facts from the Sources
The draft was released on September 14, 2026. It includes ethics restrictions on officials and their spouses. The circuit-breaker provision for stablecoins is set to last 18 months after enactment. The bill requires 60 senators for cloture on Tuesday.
Why This Bill Matters for Crypto
The Clarity Act aims to set rules for digital assets, affecting how crypto markets operate. The ethics provisions address conflict-of-interest concerns as the administration regulates the industry. The stablecoin provision could impact banks and crypto platforms.
Upcoming Vote and Timeline
The cloture vote on Tuesday requires at least seven Democrats or independents to join the 53 Republicans. If successful, debate, amendments, and final passage must occur before the midterm campaign period. The Senate schedule shows a state work period starting October 5, with Election Day on November 3.
Sensor Lummis warned that failure to pass the bill this Congress would delay it until 2030. After the draft release, prediction market odds of passage rose from around 22% to 32% on Polymarket.
