Senate Republicans released a revised version of the Clarity Act Sunday, calling it their “last, best and final offer,” ahead of Tuesday’s cloture vote. The bill needs 60 votes, which means at least seven Democratic crossovers are needed to break the filibuster.
President Donald Trump has stamped his approval on a revised ethics proposal, which comes alongside concessions on the Blockchain Regulatory Certainty Act and stablecoin language. The package was sent with what one GOP aide called a “about 80%” of the original ethics counteroffer from Sens. Thom Tillis (R-NC) and Ruben Gallego (D-AZ), who first put it forward in July.
What Trump Agreed To
Trump’s reported $1.4 billion in income from his family’s crypto ventures last year, plus roughly $635 million from his TRUMP meme coin, made ethics rules a central fight. Investors in the token suffered significant losses.
State attorneys general now hold the power to enforce prohibitions on covered officials issuing or sponsoring digital assets, with civil penalties attached to any violations. The term “covered officials” covers elected but not yet sworn-in candidates, along with their spouses. Adult children fall outside these restrictions, and there is no scheduled end date.
The president has long hesitated when it comes to state attorney generals stepping in. During a Friday meeting, his advisors, including White House Crypto Council Executive Director Patrick Witt, spent considerable time discussing the matter with him, according to sources close to the negotiations who spoke to Crypto In America.
DeFi Rules Change
The Blockchain Regulatory Certainty Act, which shields software developers from money transmitter rules, gave up some ground. The latest version of the bill strips away explicit protections from criminal prosecutions under Section 1960. That is a red line for many in the crypto industry.
Alex Thorn, the Head of Research at Galaxy Digital, referred to the shift as a “setback.” Others in the industry characterized it as a “disappointment,” pointing out that the legal reasoning behind the prosecution of Tornado Cash developer Roman Storm remains untouched.
| Provision | Original Status | New Status |
|---|---|---|
| State AG enforcement | Rejected by White House | Added to text |
| Criminal prosecution shield | Explicitly protected | Removed from text |
| Sunset date | Included | Removed |
The Tight Calendar
The cloture vote scheduled for Tuesday is a procedural step, not a final verdict. Getting through it still requires Democratic support, and time is running short.
Lummis framed the stakes bluntly in a post on X: “A no vote on Tuesday means opposing real ethics reforms on politicians’ personal investments, handing American leadership in digital assets to our foreign competitors, and leaving Americans with zero protections in the digital asset markets.”
What Changed Trump’s Mind
Last month, Trump complained to Punchbowl News that the ethics proposal seemed aimed at him alone. He has now given his approval to the revised offer.
There could be a financial gain for Trump if he agrees to divest. Bloomberg previously reported that being forced to sell his holdings could let him put off paying capital gains taxes on the assets he is required to sell.
There has been no public explanation from the White House for the change. The Friday meeting with Witt and other advisors seems to have made a difference.
The Party of the Left
The party of the left has not engaged with the new proposal yet. The party of the right is already daring them to vote against a bill that now claims to include more than 120 of their demands.
The Next Test
The crypto industry is watching closely. Thorn’s revised odds reflect a sense that the bill’s prospects have improved, even as key provisions remain contested.
Thorn raised his 2026 passage odds from 10% to 25% after reviewing the revisions. But the bill faces a narrow path through the fall session.
The test comes Tuesday.
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