Senate Democrats are preparing a counterproposal to the CLARITY Act ahead of a September 15 procedural vote. The revised cryptocurrency market structure bill still lacks broad agreement despite Republican concessions on ethics, state enforcement, and stablecoin rewards. Democrats were not ready to support the latest draft on Monday. Senator Mark Warner said his party had a counteroffer, with ethics rules remaining the main concern. The Senate is scheduled to vote at 2:15 p.m. ET on whether to advance H.R. 3633. The cloture vote requires 60 votes to proceed; Republicans hold 53 seats and need at least seven Democrats or independents.
Republicans released a new bill version on Sunday with 126 substantive amendments based on Democratic requests. The amended bill proposes stricter ethical standards for elected officials and their families.
Senator Mark Warner said Democrats presented an alternative proposal, while Senator Gallego continues to insist on additional ethical standards. Critics argue the state attorney general enforcement provision is insufficient compared to DOJ involvement.
“Industry sources tell me they expect the counterproposal to address most, if not all, of the targeted changes Republicans made to the bill last night,” noted a report. On September 14, New York Attorney General Letitia James led 17 bipartisan attorneys general in opposition to the bill. They believe it would undermine state authority over crypto fraud and investor protection.
Stablecoin rewards remain another dispute. The bill requires the Treasury Secretary to determine if stablecoin returns significantly harm community bank deposits, triggering regulatory action. Banking groups argue this circuit breaker acts too late to prevent deposit loss.
The September 15 vote is a cloture motion to proceed, not final passage. Reaching 60 votes would allow debate and amendments before a final vote.
