The Digital Asset Market CLARITY Act has received President Donald Trump’s approval following a series of last-minute revisions designed to secure broader bipartisan support. The updated bill is set to head to a cloture vote at 2:15 PM ET on Tuesday in the US Senate, with all attention focused on whether lawmakers can finalize the legislation before an upcoming recess ahead of the midterm elections.
Republican senators released a revised version of the bill on Thursday that directly addresses concerns raised by Democratic counterparts. The White House has reportedly accommodated 80% of the proposed language in the bill’s ethics provisions, signaling a significant concession to win Democratic support.
Republican lawmakers described the revisions as their “last, best and final” offer to Democrats, emphasizing the narrow window available for the legislation’s passage. According to Crypto in America’s Eleanor Terrett, the changes specifically address Democratic concerns regarding ethics rules, protections for open-source developers, stablecoin yields, and vertical integration provisions.
Expanded Ethics Provisions
Ethics provisions remain at the center of Democratic opposition, particularly given ongoing concerns about potential conflicts of interest arising from Trump and his family’s involvement in crypto-related ventures. President Trump has reportedly agreed to incorporate 80% of the ethics proposal put forward by Senators Thom Tillis and Ruben Gallego.
The updated text prohibits elected federal officials and judges from issuing or sponsoring digital assets. It further requires them to either divest substantial crypto-related financial interests or place those interests in a blind trust.
In a notable concession, the administration has also agreed to allow state attorneys general to enforce the CLARITY Act’s ethics provisions. Under the original bill, the Department of Justice (DOJ) would have held exclusive jurisdiction over enforcement of these rules.
Narrowed Safe Harbors for Software Developers
Lawmakers have also reached agreement on limiting the legal protections under Section 604 of the bill — known as the Blockchain Regulatory Certainty Act (BRCA) — to open-source software developers. The original provision established robust safe harbor protections for decentralized, non-custodial blockchain developers, shielding them from prosecution for writing code. Supporters, including Senator Ron Wyden, argued that such safeguards are essential to fostering continued innovation in the digital asset space.
The revised language limits BRCA protections to the Bank Secrecy Act and civil enforcement. Software developers are no longer shielded from criminal cases, effectively removing their immunity from prosecution under Section 1960 of the US Code, which prohibits unlicensed money transmitting businesses.
Circuit Breaker on Stablecoin Yields
In response to the banking industry’s concerns over potential deposit flight should yields on crypto and stablecoins be permitted under the CLARITY Act, lawmakers have added a “circuit breaker” mechanism to the bill’s language. Federal regulators would be authorized to intervene if evidence emerges of widespread withdrawals from community banks into stablecoins.
The Treasury Department has been designated as the arbiter in such scenarios, giving it primary authority to determine when intervention is warranted.
Guardrails in Vertical Integration
The revisions introduce guardrails around the vertical integration of digital assets, including affiliate trading. They also aim to prevent conflicts of interest involving digital commodity exchanges, brokers, and dealers.
Additionally, the changes ensure the strict implementation of state consumer protection laws. These provisions do not exempt developers from prosecution under derivatives laws and do not impact prediction markets.