Republicans present revised Clarity Act as 'final offer'

Senate Republicans have published a revised version of the Clarity Act, which they describe as their “last, best and final” offer to Democrats. The new text includes changes on blockchain regulation, stablecoin yield and ethics rules for crypto holdings by government officials. The announcement comes just ahead of a crucial procedural vote on Tuesday, when Democrats must decide whether to support taking up the bill.

In brief:

• BRCA protections are narrowed to the Bank Secrecy Act and civil enforcement, with criminal protections excluded.
• President Trump agrees to roughly 80% of an ethics proposal that would require officials to divest crypto interests or place them in a blind trust.
• A new emergency mechanism gives federal regulators the power to intervene if stablecoins pull deposits en masse from local banks.

BRCA protections narrowed, ethics rules expanded

According to Eleanor Terrett, who first shared the details, the scope of the Blockchain Regulatory Certainty Act (BRCA) has been significantly narrowed in the revised text. The bill now provides protection only under the Bank Secrecy Act and civil enforcement. The language previously included that extended protection to criminal prosecution, including cases under Section 1960, has been removed.

On ethics, Trump agrees to what a Republican staffer describes as “80%” of the proposal jointly introduced by Senator Tillis and former Senator Gallego. Officials with substantial crypto-related interests would have to divest them or place them in a blind trust. It is also notable that state authorities would get a role in enforcing ethics rules, something the White House previously resisted.

Emergency brake for stablecoins and stricter rules for digital markets

Another new element is the so-called “circuit breaker” mechanism for stablecoin yield, an idea Senator Tillis floated in July. This mechanism gives federal regulators the power to intervene as soon as there are indications that savings deposits are flowing on a large scale from local banks into stablecoins. Treasury Secretary Scott Bessent would be designated as the authority to decide on such intervention.

The so-called “Ag title” section would get stricter rules around vertical integration, related-party transactions and conflicts of interest at digital commodity exchanges, brokers and dealers. The text also makes clear that existing state consumer protection laws remain in force and that developer protections do not provide an exemption from derivatives rules, nor affect prediction markets.

Republicans are presenting this package as their final offer to Democrats. The White House previously warned that the window for a Clarity Act is closing fast. On Tuesday, senators will vote on cloture, the procedural step that determines whether the bill is taken up. Whether the concessions are enough to win Democratic support remains to be seen.