Senate Republicans have unveiled what they termed the definitive draft of the Digital Asset Market Clarity Act (H.R. 3633) ahead of an upcoming cloture vote scheduled for Tuesday.
Senators Cynthia Lummis, John Boozman, and Tim Scott published the document late Sunday evening, noting that the draft integrates 126 “substantive changes” requested by Democrats. Should cloture be achieved, this updated wording will be presented as the substitute amendment.
GOP lawmakers stated that the revised edition incorporates the core of the Tillis-Gallego ethics framework, which grants state attorneys general authority to help enforce conflict-of-interest mandates for government officials. This specific provision was a key prerequisite for certain Democrats considering their support for the legislation.
The Associated Press reported previously that Donald Trump has largely consented to the proposed ethics guidelines for the Clarity legislation. The U.S. President and his family have faced intense political examination regarding their digital asset ventures, such as World Liberty Financial, the USD1 stablecoin, and the TRUMP memecoin. Financial disclosures for Trump revealed greater than $1.4 billion in cryptocurrency-derived revenue throughout 2025, prompting conflict-of-interest debates while his administration drafts regulations for the sector.
“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 U.S. history,” Lummis remarked in an official statement. “Democrats got what they wanted; now they need to take yes for an answer.”
Legislation text indicates the ethics stipulations apply to public employees and officials; individuals elected to the presidency, vice presidency, or congressional seats; and their spouses. Nonetheless, the bill does not impose restrictions concerning other relatives, including the children of officials.
Stablecoin circuit breaker
The proposed legislation would additionally grant the Treasury secretary the power to enact a circuit-breaker targeting stablecoin rewards to mitigate deposit outflows at community banks if payment stablecoins instigate massive withdrawals, which would remain active for 18 months following passage.
Amid an ongoing disagreement involving crypto participants, traditional financial institutions have continuously lobbied for stricter rules surrounding stablecoin yield terminology. Although the bill prohibits platforms from distributing interest on inactive stablecoin balances, rewards tied to actual stablecoin utilization remain permitted. The circuit-breaker functions as an emergency safeguard for banking entities concerned about severe deposit flight away from local community institutions.
“Bankers and bank customers spent the August recess making the case directly to their senators that local deposits are the foundation of lending in communities across the country. We are encouraged that a growing number of senators recognize the need to address the bill’s stablecoin interest loophole and strengthen the Clarity Act,” Rob Nichols, president and CEO of the American Bankers Association, stated earlier on Sunday.
Additional elements inside the updated text modify the Blockchain Regulatory Certainty Act to restrict money-transmission registration requirements for specific software creators while providing a civil safe harbor, establish Agriculture Committee boundaries concerning affiliate trading and conflicts of interest, and define the exact applicability of state-level consumer protection statutes.
Narrow window
“After more than a year’s worth of negotiations, it’s time to pass this bipartisan bill,” Patrick Witt, executive director of the White House Council of Advisors for Digital Assets, commented on X.
The Clarity Act faces a limited timeframe for successful enactment. The initial hurdle is a procedural vote on Tuesday, September 15—the day following the Senate’s return. This vote demands 60 senators. Republicans currently command 53 seats, meaning that even with a unified GOP block, at least seven Democrats or independents must cross party lines.
Cloture simply initiates debate, meaning amendments, final approval, and House processing of the Senate substitute must all be compressed into the few remaining session weeks preceding the midterm campaign cycle. Tentative 2026 calendars for the Senate indicate a district work period commencing October 5, alongside Election Day on November 3. Furthermore, House leadership scrapped the calendar weeks of September 21 and September 28, constricting the legislative window further.
Lummis warned last week that failing to secure passage during the current congressional session would push implementation of the Clarity Act back to 2030, sacrificing years of potential jobs, investments, and tax revenues.
Following the publication of the newest bill provisions, Polymarket data showed approval odds for the Clarity Act passing during the current year climbing from around 22% to 32%.
Originally published at https://www.theblock.co/news/regulation/2026-09-14-senate-republicans-release-final-clarity-act-draft-414575.
