Key Takeaways
- Senate Republicans rejected Democrats’ latest CLARITY Act counterproposal just hours before a critical procedural vote.
- Democrats sought stronger ethics provisions and narrower protections for some blockchain developers, while making relatively limited changes to the stablecoin rewards compromise.
- The Senate needs 60 votes to advance the bill, and its support remained uncertain heading into the vote.
Senate Republicans have rejected Democrats’ latest counteroffer on the CLARITY Act, leaving the landmark crypto market structure bill facing an uncertain 60-vote test on Tuesday.
The Senate is scheduled to vote at approximately 2:15 p.m. ET on whether to invoke cloture on the motion to proceed with the legislation. The procedural vote would not pass the CLARITY Act into law but would allow the Senate to begin formally considering it.
Democrats Push for Stronger Ethics and Developer Rules
Democratic negotiators submitted their counterproposal late Monday after meeting in Senate Minority Leader Chuck Schumer’s office, according to reports. The proposal followed Republicans’ release of what they described as their “last, best and final offer.”
Republicans say their latest bill text already incorporates 126 substantive changes requested by Democrats, including revisions covering ethics, decentralized finance and enforcement.
However, Democrats continued to push for tougher conflict-of-interest restrictions involving public officials and their crypto interests. The dispute has become particularly significant because of President Donald Trump’s involvement in digital assets, including World Liberty Financial and his memecoin.
Democrats’ counteroffer also sought changes to protections for non-custodial blockchain developers under the Blockchain Regulatory Certainty Act, while the stablecoin yield provisions were reportedly left largely intact.
The Republican draft had already narrowed developer protections and introduced an 18-month Treasury “circuit breaker” that could restrict stablecoin rewards if they cause substantial deposit outflows from community banks.
60 Votes Remain Uncertain
The rejection leaves lawmakers with little time to bridge their remaining differences.
Republicans control 53 Senate seats, meaning they would need Democratic or independent support even if every Republican backed cloture. That is far from guaranteed: Republican Sens. Susan Collins and John Cornyn were among lawmakers who had yet to commit ahead of the vote.
The stakes are significant for the crypto industry. Failure to clear Tuesday’s procedural hurdle could make passing comprehensive market structure legislation considerably harder before the November midterm elections, with the congressional calendar rapidly narrowing.
Top Trending Crypto Articles
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.
Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.
