Senate Republicans Release Final CLARITY Act Draft With Strict Ethics Rules
The updated digital asset bill incorporates 126 Democratic amendments and new restrictions on officials' crypto dealings.
Senate Republicans released the final draft of the Digital Asset Market Clarity Act (H.R. 3633) on September 14, 2026, marking a significant step toward a federal regulatory framework for digital assets. The release aims to secure bipartisan support ahead of a critical legislative window.
The latest version of the bill incorporates 126 substantive changes requested by Democrats. A central component of the compromise is a set of strict ethics restrictions that limit federally elected officials, judges, and their spouses from engaging in crypto-related dealings. President Donald Trump voluntarily agreed to these measures, which are described as some of the toughest ethics restrictions in U.S. history. Additionally, the draft introduces a "circuit-breaker" mechanism, granting the Treasury Secretary the authority to limit stablecoin reward outflows to protect community banks from systemic volatility.
The Path to Regulation
The CLARITY Act—short for the Crypto Leaders Act Requiring Inclusive Transparency and Yield—is designed to end the current regulatory ambiguity in the United States. The legislation seeks to establish a clear divide in oversight, designating the Commodity Futures Trading Commission (CFTC) as the primary regulator for digital commodities and the Securities and Exchange Commission (SEC) for digital securities.
Progress on the bill had previously been stalled by disputes over how stablecoin rewards should be classified and concerns regarding potential conflicts of interest involving the president's personal crypto ventures. By integrating the Democratic amendments and the ethics package, Senate leadership hopes to overcome these hurdles and move the bill toward a final vote.
Industry Implications
If passed, the act would replace a fragmented patchwork of state-level rules with a unified federal standard. This shift is expected to provide the legal certainty necessary to unlock significant institutional adoption of stablecoins and offer a safer operating environment for crypto firms and software developers.
Market sentiment has already reacted to the news. Following the release of the final text, the odds of the Clarity Act passing within the current year rose from approximately 22% to 32% on the prediction market Polymarket, suggesting that the compromise has increased the likelihood of legislative success.
What to Watch
Attention now turns to the Senate floor to see if the bipartisan concessions are sufficient to clear the necessary thresholds for passage. While the ethics agreement and the "circuit-breaker" address key Democratic concerns, the final outcome depends on whether the full chamber views these 126 changes as a sufficient compromise. Observers will be monitoring the upcoming proceedings to see if the bill can finally move from a draft to law.