Republican senators in the U.S. Senate released a revised version of the CLARITY legislation on Sunday, calling it the “last, best, and final” proposal to be presented to Democrats before the procedural vote on Tuesday. The new version includes an ethical arrangement agreed upon by Trump, as well as adjustments to provisions related to the regulation of stablecoins, digital commodity exchanges, and blockchain governance.
Incorporate ethics provisions related to Trump
According to Republican aides, the new text generally accepts about 80% of the content within the Tillis-Gallego framework. Under this arrangement, Trump is required to dispose of his large holdings of crypto assets or hand over these assets to a blind trust for management.
The text also grants the attorneys general of each state the authority to enforce relevant ethical rules. This is seen as a concession to the White House's previous stance, as the White House has previously opposed the involvement of state-level officials in such enforcement matters.
Stablecoin terms include an intervention switch
The new version of the bill includes a "circuit breaker" mechanism. If stablecoins cause a large-scale outflow of community bank deposits, U.S. Treasury Secretary Scott Bessent may intervene.
- Trigger condition: Obvious outflow of community bank deposits
- Intervening party: US Treasury Secretary Besant
- Policy objective: Mitigate the impact on the foundation of bank deposits
Exchanges tighten synchronization restrictions
The bill also tightens restrictions on digital commodity exchanges regarding vertical integration and conflicts of interest, while preserving the existing consumer protection laws of each state.
In addition, the content related to the blockchain regulation certainty act has also been narrowed down. The new wording only retains the protection at the civil enforcement level of the Bank Secrecy Act and no longer covers criminal cases. This means that the previously broader scope of protection has been deleted.
