Senate Republicans release 'final' Clarity Act draft as Trump accepts most ethics provisions

Senate Republicans released what they described as the final draft of the Digital Asset Market Clarity Act (H.R. 3633) ahead of a scheduled cloture vote on Tuesday.

Sens. Cynthia Lummis, John Boozman, and Tim Scott released the text late Sunday night, saying the draft incorporates 126 "substantive changes" requested by Democrats. If cloture is invoked, the new text would be offered as the substitute amendment.

Republicans said the new version reflects most of the Tillis-Gallego ethics proposal, which includes giving state attorneys general a role in enforcing conflict-of-interest rules for public officials. This language had been a condition for some Democrats casting their vote for the measure. 

AP reported earlier that Donald Trump has largely agreed to the proposed ethics language for Clarity. The U.S. President and his family have been under political scrutiny for their crypto businesses, including World Liberty Financial, the USD1 stablecoin, and the TRUMP memecoin. Trump's financial disclosure showed more than $1.4 billion in crypto-related income in 2025, raising conflict-of-interest questions as his administration writes the industry's rules.

"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 said in a statement. "Democrats got what they wanted; now they need to take yes for an answer."

The bill text shows that the ethics requirements will cover a public official or employee; those elected to the office of President, Vice President, or member of Congress; and their spouses. However, the bill does not state limits on other family members, such as an official's children.

Stablecoin circuit breaker

The draft would also give the Treasury secretary authority to impose a circuit-breaker on stablecoin rewards to limit deposit outflows from community banks if payment stablecoins trigger substantial withdrawals, which would last 18 months after enactment. 

In an unresolved dispute against crypto players, banks have been arguing for further tightening on stablecoin yield language. While the bill limits platforms from paying interest on idle stablecoin holdings, rewards on stablecoin usage are still allowed. The circuit-breaker is meant as an apparent "emergency brake" for banks fearing existential deposit flight from community banks.

"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, said earlier on Sunday.

Other provisions from the new text would amend the Blockchain Regulatory Certainty Act to narrow money-transmission registration for certain software developers and add a civil safe harbor, impose Agriculture Committee guardrails on affiliate trading and conflicts of interest, and clarify when or how state-level laws on consumer protection apply.

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, wrote on X.

Clarity has a narrow window for timely passage. The first test is a procedural vote on Tuesday, Sept. 15 — the day after the Senate returned. This vote requires 60 senators. Republicans hold 53 seats, so if the entire GOP conference votes yes, at least seven Democrats or independents would need to join them.

Cloture would only begin debate, as amendments, final passage, and House action on the Senate substitute would still have to fit into a few remaining session weeks before the midterm campaign period. The Senate's tentative 2026 schedule shows a state work period beginning Oct. 5, with Election Day on Nov. 3. House leaders also canceled the weeks of Sept. 21 and Sept. 28, shrinking the window even further.

Lummis said last week that failure to pass it this Congress would delay Clarity's passage until 2030, costing years' worth of jobs, investment, and tax revenue.

Following the release of the latest bill text, the odds of Clarity passing this year rose from around 22% to 32% on Polymarket.