Senate Democrats have sent Republicans a new counterproposal on the CLARITY Act just hours before Tuesday’s procedural vote, keeping negotiations open over ethics rules and other disputed parts of the bill.
The Senate is scheduled to vote at about 2:15 p.m. ET on Sept. 15. The vote requires 60 senators to support cloture before debate on the bill can move forward. Republicans hold 53 Senate seats, meaning they need support from Democrats or independents.
The Democratic counteroffer was sent to Republican negotiators late Monday, according to people familiar with the talks. The full proposal had not been made public, so the exact changes Democrats are requesting are still unclear.
Sen. Mark Warner said Democrats involved in the negotiations were preparing another proposal. Ethics rules covering federal officials remained one of the main issues being discussed.
The counteroffer came after Republicans released a revised 635-page version of the CLARITY Act. Republican negotiators say the new draft includes 126 major changes requested by Democrats during months of negotiations.
The revised bill includes new restrictions on crypto-related financial interests held by government officials. It also changes rules around stablecoin rewards and provides protections for blockchain developers.
President Donald Trump agreed to updated ethics provisions covering the president, vice president, members of Congress, federal judges and certain family members. The rules would require covered officials to deal with certain digital-asset interests through options such as selling the assets or using qualified blind trusts.
The latest version also gives state attorneys general the power to bring certain civil cases involving the ethics rules. However, some Democratic senators still believe the changes do not go far enough, especially regarding crypto businesses connected to public officials.
Republicans argue that they have already made major changes to address Democratic concerns. Sen. Cynthia Lummis, Senate Banking Committee Chairman Tim Scott and Senate Agriculture Committee Chairman John Boozman have led the Republican negotiations.
Stablecoin rewards remain another major disagreement. Under the revised bill, the Treasury secretary could study whether stablecoin reward programs cause significant deposit losses at community banks.
If Treasury later determines that the system has caused a substantial negative impact on community banks with less than $10 billion in assets, banking regulators could be required to introduce restrictions.
Banking groups say this approach may come too late. Nearly 80 state banking associations, along with the American Bankers Association and Independent Community Bankers of America, are asking senators for stronger limits on stablecoin interest and reward programs.
The banking industry argues that deposits help fund mortgages, small-business loans and agricultural lending. Banks are concerned that stablecoin rewards could encourage customers to move money away from traditional banks.
State attorneys general have raised a separate concern about the bill. A bipartisan group of 18 attorneys general is asking Congress to protect state authority over digital assets, including enforcement powers and registration requirements.
Their concerns are different from the ethics rules involving federal officials. They argue that the CLARITY Act could reduce states’ ability to investigate crypto fraud, securities violations and other cases involving investor protection.
The Senate’s vote on Tuesday is only a procedural step. Senators will vote on whether to begin formal consideration of the CLARITY Act, not whether to pass the bill into law.
If cloture passes with 60 votes, the Senate can begin debate and consider amendments. Republicans have indicated that additional market-structure language could be introduced as a substitute amendment.
The Senate could then make further changes before a final vote. If the Senate passes a version that differs from the House bill, the House would need to take additional action before the legislation could reach the president.
For now, Democrats’ new counteroffer shows that negotiations are still active just hours before the scheduled vote. Ethics rules, stablecoin rewards and state enforcement powers remain some of the biggest issues senators must resolve.
