Senate releases updated text of the CLARITY Act

616 pages, two weeks before the August recess—this time it’s really a sprint
The Senate Republicans have published the latest consolidated version of the CLARITY Act, merging two versions from the Agriculture and Banking Committees. It could be submitted for a full-body vote as early as next week
Ethics provisions are the biggest point of contention
The bill prohibits the President, members of Congress, and their spouses from issuing or endorsing digital assets during their terms, but includes a sunset clause that automatically expires on January 20, 2029
Lummis says this is a standard Trump voluntarily follows—the subtext is clear: this is to help the bill pass, not to truly constrain anyone. Durability is in question
The real substance is the blockchain regulatory certainty provisions
It provides a safe harbor for non-custodial software developers, clarifies that they are not covered as money transmission institutions, and adds 25 new provisions to respond to enforcement lawsuits. This is a legal gray area for DeFi and wallet developers—this time there’s a chance to draw the line officially
But the bill passing is far from locked in
Democrat Alsobrooks directly said the proposal that the Department of Justice would enforce the ethics provisions is not a serious idea—this isn’t a minor disagreement. Lummis acknowledged continued talks over the weekend; if they can’t reach an agreement within two weeks, they’ll push it to September
I think the direction is clear, but the timeline isn’t
If it passes next week, Circle and Coinbase will directly reprice. If it drags into September, some of the expected premium from the July 21 move will be given back
So next week is the key window
DYOR—not investment advice