7 Senate Democrats & Major Banks Push Back on the CLARITY Act

​The path to comprehensive crypto regulation in the U.S. just got a lot more complicated.
​Senate Republicans recently dropped the updated 616-page text for H.R. 3633 (The Digital Asset Market Clarity Act). While the landmark bill aims to finally end the turf war between the SEC and the CFTC, it is facing fierce resistance from both sides of the aisle, and traditional Wall Street just weeks before a critical legislative deadline.
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​What’s New in the 616-Page Draft?
​The core of the legislation remains focused on splitting crypto oversight handing jurisdiction over decentralized digital commodities to the CFTC, while keeping investment contracts under the SEC. However, the latest version introduces two major new sections:

​Strict Ethics Rules: The bill now explicitly bars top public officials (including the President, lawmakers, and their spouses) from issuing or sponsoring digital assets for personal gain or consideration.

​Law Enforcement Powers: A newly added section grants law enforcement explicit authority and frameworks for seizing stablecoins linked to illicit finance.

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​Despite the new ethical guardrails, a coalition of seven Senate Democrats, Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock, publicly stated that the draft "still falls short." They are demanding further refinements regarding consumer protection, illicit finance, and overall market integrity.
​It isn't just politicians pumping the brakes. Traditional finance is also stepping in. Six major banking trade groups, spearheaded by the heavyweight American Bankers Association (ABA), are actively seeking revisions to how the bill integrates digital asset structures with the existing banking sector.#CLARITYAct