CryptoSlate
The Senate Republican 'final' version of the CLARITY Act, H.R. 3633, is losing support hours after its release, with a Tuesday cloture vote at 2:15 p.m. Eastern requiring 60 votes to even begin debate. The revised text incorporated 126 changes Democrats requested, plus new provisions on ethics, stablecoin rewards, developers and prediction markets, but the concessions have failed to win over the bill's most vocal critics.
Why it matters
The opposition spans every flank. Sen. Elizabeth Warren's staff is circulating arguments that the state enforcement role is weaker than portrayed, and Sens. Blumenthal and Van Hollen rejected the ethics language involving President Trump's crypto interests outright. New York Attorney General Letitia James led a bipartisan coalition of 17 other state attorneys general warning the bill could strip state anti-fraud powers; states have brought more than 330 crypto enforcement actions since 2017.
Eight banking trade groups, including the American Bankers Association, dismissed the new Treasury 'circuit breaker' against stablecoin-driven deposit flight as reactive, with one state banking CEO calling it 'a joke.' Coin Center flagged the removal of criminal-law protections for developers under 18 U.S.C. Section 1960, and the Indian Gaming Association said prediction-market fixes still fail tribal sovereignty concerns.
Market impact
Failure to reach 60 votes would block the Senate from even starting debate, stalling the market-structure clarity US crypto firms and startups have lobbied for all year. Y Combinator remains 'bullish on the Clarity Act,' but the vote now tests whether a heavily revised bill can assemble a coalition that, as of Monday, was visibly collapsing on all sides.
Frequently asked questions
-
What is the CLARITY Act?
The CLARITY Act, H.R. 3633, is a landmark US crypto market-structure bill that would assign regulatory responsibility for digital assets, covering stablecoin rewards, developer protections, ethics rules for officials, and prediction markets.
-
When is the Senate vote on the CLARITY Act?
The cloture motion on H.R. 3633 ripens Tuesday at 2:15 p.m. Eastern and requires 60 votes for the Senate to begin considering the legislation.
-
Why do state attorneys general oppose the bill?
A bipartisan coalition of 18 attorneys general led by New York's Letitia James warns the bill could weaken state registration and anti-fraud powers while giving the SEC authority to preempt state rules. States have brought more than 330 crypto anti-fraud actions since 2017.
-
Why are banks unhappy with the stablecoin provisions?
Eight trade groups including the American Bankers Association say the new Treasury 'circuit breaker' only intervenes after deposit flight begins. They want Congress to prohibit stablecoin rewards outright rather than wait for evidence of harm to community banks.
-
What happens if the CLARITY Act fails its cloture vote?
Failing to reach 60 votes would prevent the Senate from beginning debate at all, leaving Republicans with a heavily revised bill and no clear path forward for market-structure legislation.
CoinTelegraph
WatcherGuru
TheBlock