Republicans Release Final CLARITY Act Text Ahead of Senate Cloture Vote

Senators Cynthia Lummis, John Boozman and Tim Scott posted the final text of the Digital Asset Market Clarity Act on Monday, a day before the Senate will vote on cloture for the bill. The revision incorporates ethics provisions that former President Trump agreed to, addressing concerns raised by Senate Democrats.

Key Legislative Changes

• The previous sunset date of Jan. 20, 2029 has been removed, making the ethics restrictions permanent.
• State attorneys general now have standing to sue for violations of the issuance, sponsorship or significant‑interest bans.
• Civil penalties increase from 10% of the consideration received or $500,000 (whichever is less) to 20% or $500,000 (whichever is greater), adjusted for inflation.
• The definition of a “covered individual” expands to include presidents, vice presidents, members of Congress who are certified but not yet sworn in, and their spouses.
• The ownership test for a “significant financial interest” is set at $15,000 or more of equity in an entity whose primary revenue comes from issuing or sponsoring digital assets.

Ethics Provisions

The ethics language reflects the Tillis‑Gallego proposal, imposing some of the toughest restrictions in U.S. history on elected officials, federal judges and their spouses. Covered individuals must divest or place holdings in a qualified blind trust by the division’s effective date and notify their supervising ethics office within three days.

Impact on Digital Assets

The bans on issuing and sponsoring digital assets apply only to assets created after the law takes effect, which is the earlier of 360 days after enactment or 60 days after the SEC issues a final rule under Section 10102(b). Tokens already launched, such as the TRUMP and MELANIA tokens introduced in January 2025, are exempt.

Political Landscape

The Senate requires 60 votes to invoke cloture. Republicans hold 53 seats; if all vote to proceed, seven Democrats would be needed. No Democrat has publicly endorsed the final text. The House previously passed H.R. 3633 with a 294‑134 vote, all Republican nay votes.

Market Reaction

Polymarket odds for the CLARITY Act becoming law in 2026 rose to 31% after the release, while odds that more than 50 senators will vote for the bill increased to 62%. Bitcoin traded around $77,666, up 0.5% in 24 hours.