US Senate Republicans release revised crypto bill text

Key facts

• U.S. Senate Republicans released a revised draft of the Clarity Act, a cryptocurrency bill.
• The revised draft includes new ethics language approved by President Donald Trump.
• The bill aims to create a regulatory framework for cryptocurrencies.
• A critical procedural vote on the bill is scheduled for Tuesday.
• The new draft includes consumer protections such as guardrails on affiliate trading.
• Some Democrats and Republicans had previously raised concerns about insufficient safeguards.

U.S. Senate Republicans have released a revised draft of the Clarity Act, a significant piece of cryptocurrency legislation, ahead of a crucial procedural vote scheduled for Tuesday. The updated text addresses concerns raised by Democrats regarding ethics provisions and by the banking industry about potential destabilization.

Key changes in the revised draft include new ethics language, which President Donald Trump has voluntarily agreed to, imposing stringent restrictions on federally elected officials, judges, and their spouses. Senators Thom Tillis and Ruben Gallego are credited with developing these conflict of interest rules, as stated by Senators Cynthia Lummis, John Boozman, and Tim Scott. The bill also aims to protect consumers with new guardrails on affiliate trading and clarifies the application of state consumer protection laws, while also safeguarding software developers.

The cryptocurrency industry has heavily backed the Clarity Act, investing substantial resources in lobbying efforts, asserting that it will provide a solid legal foundation for crypto companies. However, the bill has faced opposition from some Democrats and Republicans who believe it lacks sufficient safeguards. The banking sector has also voiced concerns. A final lobbying push by both the crypto and banking industries occurred in senators' home states leading up to the vote.