- Grayscale estimates the CLARITY Act’s passage probability at roughly 29% ahead of Tuesday’s Senate cloture vote.
- Senate Democrats met Monday to coordinate a counterproposal, with further changes potentially sought before the vote.
- The revised bill includes stricter ethics rules, stablecoin safeguards, exchange protections and expanded civil enforcement powers.
The CLARITY Act faces its first major Senate test Tuesday as Democrats prepare a response to revised Republican legislation. Grayscale said the bill’s estimated passage probability rose to approximately 29%. The updated text includes changes to ethics rules, stablecoin rewards, exchange safeguards, and civil protections ahead of the cloture vote.
Democrats Coordinate Response to Republican Proposal
According to journalist Eleanor Terrett, Senate Democrats met Monday evening to discuss the legislation and coordinate a counterproposal. The meeting occurred less than 24 hours before the Senate’s scheduled vote.
Terrett reported that industry sources expect Democrats to address most, if not all, of the targeted changes. Republicans have described their latest proposal as their “last, best and final” offer. However, it remains unclear whether they will accept further revisions before Tuesday’s vote.
The updated legislation follows negotiations involving Democrats and Republicans. Grayscale said the Senate text includes bipartisan changes covering stablecoin yield, exchanges, and civil protections.
Lummis Details Trump’s Ethics Concessions
Sen. Cynthia Lummis said President Donald Trump agreed to strict ethics restrictions involving federal officials and their spouses. The proposed rules would cover Trump, the vice president, federally elected officials, judges, and their spouses.
Lummis said Trump accepted further changes after Democrats requested enforcement beyond the Justice Department. The revised text would give state attorneys general authority to enforce ethics rules involving federal officials.
They could also pursue exchanges and issuers under consumer protection laws. Lummis said the proposal incorporates substantially all of the Tillis-Gallego ethics framework. She also cited more than 120 other changes requested by Democrats.
Stablecoin and Exchange Rules Face Further Changes
The latest draft includes Treasury circuit-breaker powers concerning stablecoin rewards and community bank deposits. The provision would address substantial deposit outflows toward payment stablecoins. The text also adds safeguards involving affiliate trading and conflicts of interest.
Other changes cover civil protections and clarify the application of consumer protection laws. Meanwhile, Grayscale reported that the estimated probability of passage rose to approximately 29%.
The Senate scheduled the cloture vote for Tuesday, Sept. 15. The vote will determine whether lawmakers can advance the bill toward further consideration.
