WASHINGTON — Senate Republicans have released revised text of the proposed Clarity Act, a sweeping cryptocurrency market structure bill that would reshape federal financial regulations governing digital assets, as GOP leaders seek a Senate floor vote as early as next week.
As the CU Daily has been reporting, the legislation has support from the credit union trade groups, which have asked that CUs be provided with powers similar to those given to other financial services providers.
The 616-page draft includes new ethics provisions approved by the White House that would establish restrictions on how federal officials may engage with digital assets while in office. The measure is intended to address concerns raised by Democrats over the Trump family’s cryptocurrency business interests, Politico reported.
Despite the changes, no Senate Democrats had endorsed the revised language as of Wednesday, leaving the bill short of the bipartisan support needed to overcome the Senate’s 60-vote threshold.
Restrictions Through 2029
According to Politico, the ethics provision would prohibit federal officials and their spouses from issuing or sponsoring digital assets in exchange for consideration while serving in government. The restrictions would remain in effect through 2029.
The proposal also would prohibit cryptocurrency intermediaries from listing digital assets issued or sponsored in violation of the provision.
One of the most contentious elements of the revised language involves enforcement. Under the draft, only the U.S. attorney general would have authority to bring civil actions against federal officials or digital asset intermediaries that knowingly violate the ethics requirements.
The bill specifically states that no enforcement actions could be brought by state attorneys general or private parties, a limitation that Democrats have criticized, according to Politico.
Dem Wants to See Changes
Sen. Angela Alsobrooks (D-MD), who supported the legislation when it cleared committee but has said additional changes are needed before she can vote for it on the Senate floor, criticized the enforcement framework, Politico reported.
“I wouldn’t support the bill if that’s the language,” Alsobrooks said in a statement Tuesday, according to Politico. “But we’ll keep working from that floor to reach an agreement that holds us all accountable.”
Senate Majority Leader John Thune, R-S.D., indicated Wednesday that he intends to bring the legislation to the Senate floor next week, even as negotiations continue.
Asked whether the measure was on track for consideration, Thune replied, “Hopefully.”
“Once the text is out, we’ll have to figure out what the traffic will bear, what changes have to be incorporated in order to 60 on the floor,” Thune said, according to Politico.
Surprise, Differing Views
The Clarity Act would establish a comprehensive federal regulatory framework for cryptocurrency markets, defining oversight responsibilities for digital asset trading and other aspects of the industry. Republicans have argued the legislation would provide long-sought regulatory certainty for the crypto sector, while Democrats continue to press for stronger ethics, consumer protection and enforcement provisions before offering their support.
