Senate Republicans Release Final CLARITY Act Draft Ahead of Tuesday Vote

Senate Republicans released a final 635-page draft of the CLARITY Act on Sunday, September 14, incorporating 126 substantive changes requested by Democrats in a bid to secure the seven opposition votes needed for a critical procedural vote on Tuesday. The revised text, described by sponsors as their "last, best, and final offer," includes a rewritten ethics title that requires covered federal officials, judges, and their spouses to divest substantial digital asset interests or place them in a blind trust, with state attorneys general empowered to enforce the rules. President Trump voluntarily agreed to the new ethics restrictions, according to Republican sponsors. Senator Cynthia Lummis, who chairs the Senate Banking Digital Assets Subcommittee, said the provisions represent "some of the toughest ethics restrictions in U.S. history." The penalties for violations would be $500,000 or 20% of the prohibited transaction value, whichever is greater, and the rules would take effect 360 days after enactment. The final draft also grants the Treasury Secretary authority to act as a circuit breaker if payment stablecoins trigger widespread deposit flight from community banks.