- Ethics provisions and updated bill text remain under negotiation ahead of a potential Senate floor vote.
- Banking groups oppose the current stablecoin compromise despite proposed safeguards against deposit flight.
- Law enforcement remains divided, with some groups backing the bill while others seek stronger crypto restrictions.
Senate negotiations over the Clarity Act entered another critical phase after several developments emerged within the past 24 hours. According to journalist Eleanor Terrett, lawmakers continue negotiating ethics provisions, stablecoin rules, and law enforcement concerns, while updated legislative text could arrive soon or slip later this week as discussions continue ahead of a potential floor vote.
Ethics Talks Shape Latest Negotiations
According to Eleanor Terrett, industry sources expect revised Clarity Act language shortly, although ongoing ethics negotiations could delay its release. Those discussions have become a major focus before senators finalize the legislation.
Meanwhile, Senator Cynthia Lummis outlined several proposals during a Tuesday morning interview. She said negotiators are considering requiring public officials holding cryptocurrency to place those assets into blind trusts.
However, Lummis also said she plans to oppose a proposal allowing state attorneys general to sue the U.S. Department of Justice over ethics enforcement. Terrett reported negotiators had tentatively accepted that proposal before the Senate Banking Committee’s May markup.
Banking Groups Renew Opposition
As negotiations continue, stablecoin provisions remain another major issue. Senator Thom Tillis told Brendan Pedersen he proposed “circuit-breaker language” allowing federal regulators to intervene if widespread deposit movement toward stablecoins occurred.
Tillis also said the proposal would test banking industry concerns. He argued continued opposition after adding such safeguards could indicate deposit flight arguments were overstated.
Meanwhile, the American Bankers Association, ICBA, and 76 state banking associations sent a letter Monday opposing the current compromise. According to Terrett, the groups argued the stablecoin yield agreement still allows stablecoins to resemble interest-bearing deposits.
She also reported banking organizations had largely lobbied senators privately after the bill cleared the Senate Banking Committee. Their latest letter marks a broader public campaign before a possible Senate vote.
Law Enforcement Views Split
Law enforcement organizations also remain divided over the legislation. The Federal Law Enforcement Officers Association submitted a letter supporting the Clarity Act while recommending targeted revisions to the Blockchain Regulatory Certainty Act.
However, the National Sheriffs’ Association publicly opposed the bill through a new video distributed by CASE. The organization argued cryptocurrency benefits criminal organizations and said the legislation would complicate law enforcement efforts.
According to Terrett, Democratic senators including Catherine Cortez Masto and Mark Warner want those concerns addressed before supporting the bill. Separately, White House negotiator Patrick Witt will begin mandatory Georgia Army National Guard JAG training on July 27, while Crypto Council Deputy Director Harry Jung is expected to assume his responsibilities.
