The CLARITY Act is heading toward a key Senate test next week, with lawmakers needing 60 votes to advance the legislation. Republicans released a new version of the bill on Thursday as the Senate prepares to return from recess.
The latest draft of the Digital Asset Market CLARITY Act makes several adjustments to provisions covering decentralized finance and traditional financial institutions involved in crypto. Despite the changes, the proposal is not yet considered a final bipartisan agreement and could still struggle to attract enough Democratic votes.
The revised text adds new requirements for certain DeFi activities, while much of the legislation remains consistent with earlier versions. The broader bill seeks to establish a clearer regulatory framework for digital assets and define the responsibilities of federal agencies overseeing the industry.
Senator Cynthia Lummis, a Republican and key participant in the negotiations, said lawmakers should continue pursuing legislation rather than leaving crypto policy solely to the CFTC and SEC.
Lummis said the draft incorporates more than 114 provisions requested by Democratic lawmakers. She argued that legislation would provide the industry with more lasting certainty than regulatory rules, which could change with future administrations.
The latest version also addresses when DeFi projects would need to register with the CFTC and comply with Bank Secrecy Act requirements. It clarifies that the relevant DeFi provisions apply to spot and cash transactions involving digital commodities rather than prediction markets. The bill also seeks to give credit unions clearer guidance on their involvement with digital assets.
The legislation’s immediate prospects remain uncertain. The Senate is scheduled to hold a cloture vote on Tuesday, Sept. 15, and reaching the required 60-vote threshold will require support from both Republicans and Democrats.
Democratic opposition continues to center partly on crypto-related ethics concerns. Lawmakers have sought a bipartisan agreement aimed at preventing President Donald Trump and other senior officials from profiting from crypto businesses.
Senator Thom Tillis, a Republican from North Carolina, said the White House still needed to engage in negotiations over the proposed ethics agreement. Several Democrats have indicated that they will not support the bill without progress on the issue and Trump’s approval.
The legislation has also faced objections from some Republicans, including concerns surrounding stablecoin rewards and yield programs. Those provisions became a significant issue in the weeks before the Senate’s summer recess.
On Thursday, the American Bankers Association, Independent Community Bankers of America and 77 state banking associations called for tighter restrictions on rewards offered by stablecoin issuers.
Meanwhile, administration officials are urging lawmakers to keep the bill moving. White House crypto adviser Patrick Witt called on senators from both parties to support Tuesday’s procedural vote so negotiations can continue.
Treasury Secretary Scott Bessent made a similar appeal, warning that failure to advance the legislation could undermine U.S. leadership in digital assets and blockchain technology. He also argued that passing the bill could provide stronger tools for addressing the misuse of digital assets.
Crypto industry representatives have likewise pressed the Senate to act. Cody Carbone of the Digital Chamber described the latest draft as the result of years of bipartisan negotiations and urged lawmakers to continue the legislative process.
The Sept. 15 vote will therefore be an important turning point for the CLARITY Act. Even if it clears the procedural hurdle, disagreements over DeFi regulation, stablecoin rewards, ethics provisions and other issues could continue to complicate its path toward final passage.
