Clarity Act Enters Final Senate Battle With New Crypto Restrictions

The Clarity Act may be in its final stages, with Republican lawmakers making new concessions to secure the bipartisan support needed ahead of Tuesday’s vote. Crypto market stakeholders want the law to ease regulatory pressure and spur new investment.

Republicans Make “Final” Offer

Over the weekend, lawmakers tweaked certain provisions to reach a position favorable to both parties. According to sources familiar with the matter, it covers the ethics concerns a section of the Senate flagged, which President Trump has now also agreed to.

“I can assure you that I’m not hearing from my constituents that their number one concern is to pass the Clarity Act… it is a bill that is masquerading as a way to create good regulation and protection for consumers with respect to cryptocurrency, but it has some big problems that have not been fixed,” Sen. Chris Van Hollen highlighted in a video on X. 

Several provisions tweaked ahead of Tuesday’s vote range from ethics and stablecoin yield to updates on vertical integration. First, state attorneys general will be allowed to enforce ethics on federal officials, potentially closing out a large part of the ethics concerns.

Since 2025, a group of Democratic lawmakers has criticized Trump’s family’s involvement in the crypto market, with fortunes soaring. On the campaign trail, Trump pledged to make the country the world’s crypto and artificial intelligence (AI) capital and so far has rolled out new regulations.

Changes also include narrower provisions under the Blockchain Regulatory Certainty Act and a circuit breaker, including capital migration out of traditional banks, driven by stablecoin yield. Big banks have lobbied against this position because allowing yield to stablecoins will lead to massive fund flows.

Many view this as a key holdup behind the status quo, citing possible disruptions in finance. Per the new offer on Sunday, the Treasury Secretary can restrict rewards if outflows from banks surge. However, many still question the timeline and metric that might be used. 

It further includes protections against conflict of interest across the digital commodity market and allows state consumer protection laws to remain operational. For now, crypto analysts and policy watchers are more confident in a positive outcome. 

The effect will boost sentiment after sideways shakeups and stretched liquidations.