The Clarity Act aims to build a new rulebook for cryptocurrencies and other digital assets. It cleared the Senate Banking Committee in May, but floor action has been stuck because leaders have not locked down 60 votes to overcome a filibuster. With a full Senate present, supporters would need at least seven Democrats to say yes.
Senate Majority Leader John Thune, R-S.D., put a test vote on the calendar for Tuesday before lawmakers departed for the August break, setting up a do-or-die moment to keep the bill moving. Backers say it is about whether the Senate should continue working on the package, not a final verdict.
A Democratic aide familiar with the talks said some Democrats may vote to proceed. According to the aide, Thune has framed it as a low-stakes step to keep discussions alive, with the expectation that senators would have another chance to change the bill and vote again before any final decision.
Republican negotiators unveiled an updated package Sunday night, followed by another version from Sen. Cynthia Lummis, R-Wyo., early Monday to woo holdouts.
The new draft folds in what Republicans describe as major elements of an ethics framework negotiated by Sens. Thom Tillis, R-N.C., and Ruben Gallego, D-Ariz., and now accepted by Trump, including a key Democratic priority that lets state attorneys general enforce ethics rules for federal officials. Still, numerous Democrats insist their backing depends on enacting stricter protections aimed at preventing President Donald Trump and his family, as well as other federal officials, from reaping gains from crypto ventures. As a sign of the uphill climb, only two Democrats supported moving the measure forward in committee.
Stablecoin rewards are another sticking point. Banks warn that interest-like payouts could entice customers to yank deposits for better returns. The latest text tries to address that by instructing the Treasury secretary to curb stablecoin rewards if withdrawals from community banks reach significant levels.
Banking trade groups are not satisfied. In a letter sent Thursday to Thune and Senate Minority Leader Chuck Schumer, the American Bankers Association, joined by nearly 80 other organizations, urged the Senate to further tighten the bill's limits on stablecoin interest, yields, and rewards to protect community bank funding and local lending. The updated language still appears to leave unresolved issues for bankers, and some Republican senators have echoed those concerns.
Changes in financial rules can affect your plans, so steady strategies protect progress. Join Briefs Finance CEO Jaspreet Singh on September 29th for a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, where he shows how we're spotting investment opportunities as the dollar falls. Save your spot.
Supporters are leaning on momentum. The White House signaled it could offer additional concessions on ethics and other areas, but only if the Senate first advances the bill.
Not everyone is buying it. Sen. Chris Van Hollen, D-Md., posted on X that his constituents are not pressing for the Clarity Act and called the bill a false front for consumer protection that leaves "big problems" unaddressed. "We can't let this pass," he said.
Crypto companies are upbeat. Coinbase CEO Brian Armstrong, whose exchange has been a prominent backer, told CNBC on Thursday the Senate should be ready to support the bill. And he argued that even a failure to advance would not halt oversight forever: "Frankly, if it doesn't pass, it's also going to be a good outcome because the SEC and the CFTC have said that they're ready to publish rulemaking, and we're going to get regulatory clarity one way or another on the 15th or the day or two after." Separately, Coinbase reached a deal with financial services provider Moov to give community banks access to stablecoin functionality, which CNBC first reported.
If Tuesday's motion does not get the votes, lawmakers could try to revive a revised version. But the clock is tight, and it is uncertain whether there is enough time left in this Congress to rework the bill and push it through.
Tuesday's vote determines whether senators keep negotiating or send the bill back to the shelf. Moving ahead would open the door to amendments on ethics rules and stablecoin rewards, both of which hit close to where your deposits sit and how digital-asset firms operate. A stumble would shift attention to agencies, with the SEC and CFTC signaling they are ready to propose rules around mid month.
Two practical takeaways to watch: whether the Senate allows state attorneys general to help police federal officials' crypto conflicts, and how any cap on stablecoin rewards might reduce competition with bank deposits. Either path means clearer rules are coming - either from Congress or from regulators - which can change the playing field for tokens, exchanges, and community lenders alike.
When policy shifts appear, keeping a long term focus helps preserve and grow savings. Our CEO Jaspreet Singh is hosting a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, on September 29th. Sign up free to join him live.
