Senate Republicans unveiled the latest version of the CLARITY Act, a 635-page cryptocurrency market structure bill, incorporating new ethics rules backed by President Donald Trump. These rules would require public officials to divest from digital assets or place holdings in a blind trust. The bill also grants enforcement powers to both the Department of Justice and state attorneys general. Changes include a revised stablecoin yield section with a “circuit breaker” mechanism and stricter limits on vertical integration. The Blockchain Regulatory Certainty Act has been narrowed to cover only the Bank Secrecy Act and civil enforcement. Senator Cynthia Lummis stated the bill is ready after bipartisan negotiations.
Senate Republicans have unveiled major changes to the CLARITY Act, including crypto divestment rules and new enforcement powers for federal and state officials. The latest version of the cryptocurrency market structure bill, comprised of 635 pages, includes an ethics framework backed by President Donald Trump that would restrict public officials from issuing or sponsoring digital assets.
The revised text allows both the Department of Justice and state attorneys general authority to enforce the rules, addressing one of the main issues Democrats had raised during negotiations. US Senate Banking Digital Assets Subcommittee Chair Cynthia Lummis stated, “After a year of intense daily bipartisan negotiations, this bill is ready.”
“President Trump voluntarily agreed to unprecedented ethics restrictions, holding every federally elected official, judge, and their spouses to some of the toughest ethics restrictions in US history,” Lummis added. The ethics section incorporates much of the Tillis-Gallego proposal, requiring officials to either sell substantial crypto-related holdings or move them into a blind trust.
Changes to the Blockchain Regulatory Certainty Act now limit its scope to the Bank Secrecy Act and civil enforcement, removing language that extended protections to criminal proceedings. The bill’s stablecoin yield section has been revised with a “circuit breaker” mechanism, giving federal regulators ability to step in if stablecoins caused significant withdrawals from community banks.
Stricter limits on vertical integration have been introduced, covering affiliate trading and potential conflicts involving digital commodity exchanges, brokers, and dealers. The text confirms that state consumer protection laws remain in effect, and developer protections would not override derivatives regulations. Coinbase CEO Brian Armstrong voiced support for the CLARITY Act ahead of the Senate vote, stating the bill was ready for approval.
