Revised Clarity Act Text Faces Pushback from Banks, State AGs, and Senator Warren

Hours before a Senate cloture vote on the Digital Asset Market Clarity Act, three distinct groups voiced opposition to the revised bill text.

Banking Trade Groups Call for Tighter Language

Eight banking trade associations, including the American Bankers Association and the Independent Community Bankers of America, sent a letter to Senate leaders John Thune and Chuck Schumer on September 14. The groups said the bill’s stablecoin yield ban could still allow interest‑like payments on balances and offered a list of amendments aimed at protecting banks’ ability to extend credit.

State Attorneys General Oppose the Bill Entirely

New York Attorney General Letitia James led a coalition of 17 other state attorneys general in a separate letter to Senators Tim Scott and Elizabeth Warren. The letter warned that the bill’s federal preemption provisions could strip state registration regimes and give the SEC unchecked discretion. The coalition cited FBI data showing $11.4 billion in crypto‑related fraud losses in 2025, a 22 % increase from the previous year, and noted that states have filed more than 330 anti‑fraud actions since 2017.

Senator Warren Rejects Added Ethics Provision

Senator Elizabeth Warren criticized a new ethics clause added by Republicans, arguing it would allow political appointees to control enforcement and contain loopholes that could protect certain crypto businesses. Warren’s objections focus on the perceived weakness of the provision and its potential to benefit former President Trump’s crypto interests.

Senate Vote Outlook

The cloture vote, scheduled for Tuesday afternoon, requires 60 votes to advance the bill. Republicans will need to win over at least seven Democrats, with Senator Cynthia Lummis claiming the revised text incorporates over 100 changes requested by Democrats. Negotiations continue as Democratic leaders assess the revised language.