The CLARITY Act faces a crucial test when the Senate returns from recess next week, with 60 votes needed to move the legislation forward. Republicans released a revised version of the bill on Thursday as lawmakers prepare for the first procedural vote.
The updated Digital Asset Market CLARITY Act makes several changes to its treatment of decentralized finance and traditional financial institutions involved in digital assets. However, the latest draft is not widely viewed as a final bipartisan compromise and may still struggle to attract enough Democratic support.
The revised legislation introduces additional obligations for certain DeFi activities, while much of the broader framework remains similar to previous versions. The bill is intended to establish clearer rules for how federal agencies would regulate cryptocurrency markets in the United States.
Senator Cynthia Lummis, a Republican who has played a central role in negotiations, urged lawmakers to keep pursuing legislation instead of leaving crypto policy entirely to regulators such as the CFTC and SEC.
Lummis said more than 114 provisions requested by Democratic lawmakers had been incorporated into the bill. She argued that congressional legislation would give the crypto industry more durable regulatory certainty than agency rulemaking, which can shift when a new administration takes office.
The latest draft, according to Lummis, specifies when DeFi projects would be required to register with the CFTC and comply with Bank Secrecy Act obligations. It also clarifies that the DeFi provisions apply to spot and cash transactions involving digital commodities rather than prediction markets. The legislation additionally seeks to provide credit unions with clearer rules for handling digital assets.
Still, it remains uncertain whether the bill has enough support to survive the first procedural hurdle. The Senate is scheduled to hold a cloture vote on Tuesday, Sept. 15, and passage will require 60 senators, making bipartisan backing essential.
Democratic lawmakers continue to raise concerns over the lack of an agreement on crypto-related ethics rules. The dispute centers on restrictions intended to prevent President Donald Trump and other senior officials from financially benefiting from crypto businesses.
Senator Thom Tillis, a North Carolina Republican, said earlier this week that the White House still needed to participate in discussions over a bipartisan ethics proposal. Several Democrats have indicated they will withhold their support without an agreement on the issue and approval from Trump.
The bill also faces concerns within the Republican Party over several provisions. One area of disagreement involves stablecoin rewards and yield programs, which drew increased attention before the Senate’s summer recess.
On Thursday, the American Bankers Association, Independent Community Bankers of America and 77 state banking associations urged lawmakers to impose stronger restrictions on rewards offered by stablecoin companies.
The White House has nevertheless encouraged senators to keep the process moving. Crypto adviser Patrick Witt called on both Republicans and Democrats to support Tuesday’s procedural vote, arguing that advancing the bill would allow negotiations to continue.
Treasury Secretary Scott Bessent similarly urged lawmakers to support the motion to proceed. He warned that failing to advance the legislation could weaken U.S. leadership in digital assets and blockchain technology while limiting efforts to develop stronger tools against the misuse of crypto.
Crypto industry groups have also pushed lawmakers to advance the bill. Cody Carbone of the Digital Chamber described the latest version as the result of years of bipartisan negotiations and urged the Senate to act.
The Sept. 15 vote will therefore be a major test for the CLARITY Act. Even if lawmakers clear the procedural hurdle, disagreements over DeFi rules, stablecoin rewards, ethics provisions and other regulatory issues could continue to complicate the bill’s path toward final passage.
