The Clarity Act received another update over the weekend.
Republican Senators Cynthia Lummis, John Boozman and Tim Scott have released their final version of the Clarity Act.
At the same time, on Sunday evening there was a meeting held between Senior Democratic Senators by Chuck Schumer to prepare ahead of tomorrow’s key cloture vote.
An older version was dropped right before the weekend, while the White House was engaged in another meeting on Friday reviewing the latest ethics language.
This vote was originally delayed in August before the recess.
New Language Added to Clarity Act
Per to the final Clarity Act version published, the Clarity Act has received additions to ethics, stablecoins, and other protections.
Importantly, this includes more points from the ethics counter offer sent in by some Senators last month to increase the ethics language agreed by the White House at the end of July.
Now, State Attorney Generals (AGs) can take legal action against person(s) or intemediaries “that harms the State or the residents of the State”. This concerns issuance and sponsorship of digital assets, as well as large financial interests and exchange listings.
On stablecoins, there is new language that allows the U.S. Treasury to step in and ensure that there can be a pause on payment stablecoin rewards if true deposit flight occurs from local banks.
Other additions concerns the Blockchain Regulatory Certianty Act (BRCA) and Agricultural version of the bill. Here, more defence is given to developers under Civil law, trading/broker activities, and State protection laws concerning consumers.
What’s Next for the Clarity Act?
It remains to be seen if the Clarity Act passes the Cloture Vote tomorrow. Several narratives remain to object to the digital asset regulation smoothly going ahead.
The Indian Gaming Association is displeased about existing clauses surrounding the CFTC and prediction markets. Also, banking opposition to stablecoin yield language by the State Banking Associations continues to be prominent.
If the Cloture Vote passes with 60 or more votes, it is likely that there may be more amendments debated on the floor by Senators representing ongoing issues from various stakeholders.
If this passes, reconciliation with the House version passed already is necessary, although there are now less calendar days to do so.
Additionally, the House may go back to the Senate on some issues that were not previously discussed during its vote last summer.
