U.S. Senate Republicans have released a revised version of the Digital Asset Market Clarity Act, adding new ethics provisions and other changes ahead of a critical procedural vote that could determine the legislation’s future.
The legislation seeks to establish a comprehensive regulatory framework for digital assets in the United States, including clearer rules for cryptocurrencies and the agencies responsible for overseeing the sector.
Republican senators involved in the negotiations said the latest draft incorporates 126 substantive changes requested by Democrats following months of discussions over ethics, financial stability, consumer protection and crypto regulation.
Among the most significant revisions are tighter restrictions aimed at preventing elected officials from profiting from certain cryptocurrency ventures. The updated language also expands the role of state attorneys general in enforcing those restrictions.
However, some Democrats remain dissatisfied, arguing that the provisions do not go far enough because they would not require public officials to fully divest from their cryptocurrency holdings.
The revised bill also attempts to address concerns raised by the banking industry over stablecoins. Banks have warned that allowing crypto companies to offer rewards linked to stablecoins could attract deposits away from traditional financial institutions and potentially affect their ability to lend.
Despite the revisions, the stablecoin rewards issue remains a major point of disagreement between the banking and cryptocurrency industries.
The legislation faces a crucial procedural vote in the Senate, where supporters will need 60 votes to move it forward. The outcome could determine whether one of the most significant U.S. cryptocurrency regulatory initiatives advances through Congress or faces another setback.
