Key facts
- The odds of the Clarity Act passing Congress have risen to 31%.
- President Trump has agreed to updated ethics provisions for the Clarity Act.
- The Senate will vote on cloture for the Clarity Act on Tuesday.
- The bill requires 60 votes to proceed to floor debate.
- Ethereum ETFs saw $216 million in inflows on Friday.
- Bitcoin ETFs experienced $13 million in net outflows on Friday.
The Clarity Act, a proposed piece of crypto market structure legislation, has seen its odds of passing Congress increase significantly following President Trump's agreement to updated ethics provisions. Senate Democrats convened on Sunday evening to discuss the bill ahead of a crucial cloture vote scheduled for Tuesday at 2:15 p.m. ET. The bill's passage hinges on securing 60 votes, a threshold that appears increasingly attainable with Trump's endorsement of ethics clauses that had previously stalled negotiations since July.
The revised text, which landed on Thursday, includes over 114 new provisions requested by Democrats, notably placing "decentralized-in-name-only" protocols under CFTC registration and Bank Secrecy Act rules. Despite these changes, some lawmakers, like Senator Cory Booker (D-NJ), have indicated that the revised text still requires further improvement.
Even if the Clarity Act does not pass, its progress is spurring regulatory action. CFTC Chain Mike Selig has directed staff to explore rule-making under existing authority, and the SEC has proposed allowing blockchains to serve as official stock ownership records. Additionally, the CFTC has moved to dismiss CME's lawsuit regarding perpetual futures, and Coinbase is seeking to bring single-stock perpetuals onshore.
In market movements, major cryptocurrencies saw modest gains, with Bitcoin trading around $77.8k and Ethereum near $2,510. Notably, Ethereum ETFs experienced substantial inflows of $216 million on Friday, contrasting with Bitcoin ETFs, which saw $13 million in outflows. Other market activity included a 3% rise in oil prices and a 2% dip in gold.