Crypto: Trump Backs the CLARITY Act as 126 Changes Shake Up the Bill

The CLARITY Act returns to the Senate with a compromise that Republicans hope will be decisive. Donald Trump has accepted new ethical restrictions targeting public officials involved in crypto, while the final text incorporates 126 changes requested by the Democrats. The bill now totals 635 pages. Cynthia Lummis, John Boozman, and Tim Scott presented it on Sunday, ahead of the procedural vote scheduled for Tuesday.

Crypto: Trump accepts new limits on elected officials’ interests

This was one of the main sticking points. In August, Cointribune still detailed the conflict around Donald Trump’s crypto interests and the Democrats’ requests to strengthen ethics rules. The new version goes further. Cynthia Lummis states that Trump voluntarily accepted the essence of the bipartisan Tillis-Gallego compromise. The restrictions concern the president, vice president, federal elected officials, judges, and their spouses.

The text especially prohibits certain covered persons from issuing or sponsoring digital assets or holding significant financial interests in these activities. When holdings exceed predetermined thresholds, they must be divested or placed in a qualified blind trust.

Another important concession: state attorneys general gain a role in enforcing the rules. This point was part of the Democrats’ demands.

Civil penalties can reach $500,000 or 20% of the amount received in a prohibited transaction, whichever is higher. The provisions would take effect 360 days after the law’s adoption, unless enforcement regulations are issued sooner.

This is no longer the text presented at the beginning of summer.

Lummis speaks of 126 substantial changes requested by Democrats after more than a year of negotiations. However, the CLARITY Act had already left the banking committee in May by 15 votes to 9.

Stablecoins and developers also secure a new compromise

Ethics is not the only part modified. Rewards paid on stablecoins had triggered months of tension between banks and the crypto industry. Community banks fear especially that attractive returns might shift some bank deposits toward stablecoins.

The final version now introduces a “circuit breaker.” The Treasury Secretary could restrict certain rewards if they observe a significant outflow of community bank deposits to stablecoins. This authority would be temporary: it would expire 18 months after the law’s effective date.

The issue had already complicated negotiations. In August, it was noted that stablecoins remained one of the main hurdles to the CLARITY Act.

Developers also gain changes. The new version of the Blockchain Regulatory Certainty Act maintains protection against automatically treating certain developers as money transmission businesses under the Bank Secrecy Act. Miners and validators are now explicitly covered.

On the other hand, protections have been tightened. The text notably removes some references to criminal prosecutions under section 1960 of U.S. law. Digital commodity exchanges, brokers, and dealers also face stricter safeguards regarding transactions with their affiliates and conflicts of interest. 635 pages in total. The compromise has thickened.

Tuesday’s vote remains the real hurdle

Despite concessions, the CLARITY Act is not yet close to becoming crypto law. The Senate must first pass the procedural vote scheduled for Tuesday at 2:15 PM Washington time. 60 votes are required to advance. We recently explained why this September 15 step remains decisive.

If cloture is adopted, the 635-page text will be proposed as a substitute amendment and can continue its course in the Senate. Republicans now present the document as their “last and best offer” to the Democrats.

Lummis does not hide the political pressure. According to her, Democrats have obtained most of their requests and must now accept the compromise. This is obviously the Republican reading of the file. There is no guarantee yet that enough Democratic senators will share this view on Tuesday.

Prediction markets remain cautious. Cointelegraph reports that the probability of the CLARITY Act being adopted in 2026 has risen to 35% on Polymarket, its highest level since late July. This remains a market estimate, not a Senate vote count.

A few days earlier, the picture was much darker. Cointribune noted a drop in adoption probabilities down to 13%. This time, Trump has accepted the ethics rules. Stablecoins have a compromise mechanism. Developers have their protections. And 126 Democratic requests have been integrated. The crypto text therefore comes to the vote with far fewer open points than before summer. It still lacks the essential: the votes.