US Republicans Release Final Version of CLARITY Act With New Ethics Rules
Republicans present final offer on crypto regulation
Senate Republicans released a revised 635-page version of the CLARITY Act on Sunday. This bill, which aims to create a legal framework for digital assets, includes new ethics rules backed by Donald Trump. The proposal is being presented as a "final offer" to Democrats before a key vote scheduled for Tuesday.
The updated text is the result of a year of negotiations. Republican aides stated that the bill includes 126 changes requested by Democrats to help the legislation move forward in the Senate.
Highlights of the revised 635-page bill
- The bill establishes strict ethics rules for government officials and their families regarding digital asset holdings.
- It extends legal protections to crypto miners and validators, who are the people and systems that process blockchain transactions.
- The Treasury Department would gain temporary power to limit certain rewards on stablecoins, which are digital assets designed to maintain a steady value.
- New safeguards would address conflicts of interest at digital asset exchanges, which are platforms where users trade cryptocurrencies.
New ethics restrictions for federal officials
Senator Cynthia Lummis, along with Senators John Boozman and Tim Scott, released the new text. Lummis stated that the ethics provisions were agreed to by Donald Trump and would be some of the toughest in U.S. history. These rules apply to all federally elected officials, judges, and their spouses.
Under the proposal, these individuals would be banned from issuing or sponsoring digital assets. They would also be required to sell any significant financial interests in crypto or place them into a blind trust. Violators could face civil penalties of $500,000 or 20% of the transaction value, whichever is higher. These rules would begin 360 days after the bill becomes law.
Protecting developers and managing stablecoins
The bill updates the Blockchain Regulatory Certainty Act to protect software developers. It ensures they are not treated as money transmitters or financial institutions. These protections now also include miners and validators. The bill also removes certain references to laws regarding unlicensed money businesses.
Regarding stablecoins, the Treasury Secretary could create rules to restrict rewards if they determine that community banks are losing too many deposits. However, this authority would expire 18 months after the bill is enacted. The legislation also clarifies how consumer protection laws apply to the digital asset market.
Why this matters for the crypto industry
This bill represents a major attempt to settle long-standing debates over how crypto should be governed in the United States. By including ethics rules and industry protections, supporters hope to gain enough bipartisan support to pass the bill into law. Currently, prediction markets on Polymarket show a 35% chance that the CLARITY Act will be signed into law in 2026.
Current status and next steps
A procedural vote is scheduled for Tuesday at 2:15 p.m. ET. This vote will determine if the Senate can advance the bill toward a final consideration on the floor. Republican leaders have indicated that this version represents their final attempt to reach an agreement with Democrats on the text.