Key Highlights
- Senate Republicans released an updated version of the CLARITY Act after stakeholder briefings.
- The revised draft includes a White House-backed ethics package that currently lacks Democratic support.
- The legislation retains the Blockchain Regulatory Certainty Act (BRCA), stablecoin provisions, and adds a new law enforcement section.
Senate Republicans have released an updated draft of the CLARITY Act following briefing calls with stakeholders held on Wednesday morning.
The revised legislation includes provisions covering ethics rules for public officials, the Blockchain Regulatory Certainty Act (BRCA), stablecoin regulations, law enforcement measures, and other areas related to digital assets.
According to journalist Eleanor Terrett in an X post, the ethics package was negotiated between the White House and Republican senators, including Cynthia Lummis and Bernie Moreno. However, the proposal has not secured Democratic support.
Key elements of the updated text include a ban on the president, vice president, members of Congress, federal judges, and other covered officials, along with their spouses, from issuing or sponsoring digital assets for compensation while in office. This restriction includes a sunset date of January 20, 2029.
Disclosure of crypto sales becomes necessary
Covered officials would be required to either sell their crypto holdings and investments in crypto-related companies or place them in a blind trust they do not control, or both. The proposal grants the Department of Justice (DOJ) civil enforcement authority over ethics violations, including the ability to sue exchanges that knowingly list prohibited tokens.
Additionally, the text requires disclosure of crypto sales exceeding $1,000 and directs the Government Accountability Office to examine further ethics gaps.
Democrats have expressed strong opposition to assigning enforcement solely to the Department of Justice without involving state attorneys general. Bipartisan negotiations are anticipated in the coming days, and changes to this section are considered likely.
BRCA and stablecoin provisions remain unchanged
Meanwhile, the Blockchain Regulatory Certainty Act (BRCA) and the stablecoin yield provisions remain unchanged, while the revised draft adds a new section dedicated to law enforcement.
Senators Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act of 2026 on January 13, 2026, a bipartisan measure intended to reduce regulatory uncertainty for blockchain developers and service providers.
The legislation seeks to establish that software developers and infrastructure providers who build decentralized networks but do not take custody of customer funds should not be classified as money transmitters under US law. The clarification aims to protect non-custodial actors from certain regulatory burdens associated with traditional financial intermediaries.
The stablecoin yield provisions also remain unchanged. The text retains the Tillis-Alsobrooks compromise without additions such as the potential “circuit breaker” proposed by Sen. Thom Tillis to address concerns of deposit migration caused by a yield-bearing stablecoin.
It prohibits companies from paying interest on users’ idle payment stablecoin balances. However, it permits rewards linked to actual platform activity, such as transactions or staking, provided they are not economically equivalent to interest on a bank deposit.
Strengthening law enforcement capabilities
The revised draft also introduces a section focused on strengthening law enforcement capabilities regarding crypto-related crime. It increases funding for state and local investigations and blockchain analytics tools while establishing new training programs for law enforcement officers and prosecutors.
It also creates a “cyber center” to address threats from nation-state actors, including North Korea and Iran, and forms a public-private task force to coordinate efforts against crypto fraud. Stablecoin issuers would be required to comply with lawful orders to freeze, seize, burn, or reissue tokens when necessary.
Why CLARITY Act matters
The CLARITY Act aims to establish a comprehensive federal framework for regulating digital assets in the United States. It would define oversight responsibilities between the SEC and the CFTC, clarify rules for non-custodial blockchain developers, establish standards for stablecoins, strengthen consumer protections, and introduce ethics provisions for public officials.
With bipartisan negotiations expected to continue, the bill’s path to a Senate vote will likely depend on whether lawmakers can reach agreement on the remaining ethics and enforcement provisions before the August recess.
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