Seven Senate Democrats say the updated CLARITY Act text falls short. They opposed the proposed draft, even after it added ethics rules barring public officials from issuing digital assets.

The 616-page bill needs 60 votes to clear the Senate. Their opposition complicates the path to that threshold before the August recess.

What the New CLARITY Act Text Adds

Senate Republicans released the 616-page bill, formally H.R. 3633, on Wednesday. The Digital Asset Market Clarity Act sets a federal framework for crypto oversight.

The text divides authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Only 2 parts are new since the May draft.

The additions are ethics requirements and a law enforcement section with stablecoin seizure powers. The former stops covered officials from issuing or sponsoring a digital asset in exchange for consideration. 

The group spans the President, Vice President, and lawmakers, plus their spouses, throughout their time in office. The agreement sunsets on January 20, 2029.

Democrats and Banks Seek Changes

Nonetheless, the addition was not enough for democrats. Senators Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock said the language still needs work, alongside consumer protection, illicit finance, and market integrity.

“The Republican-proposed text of the CLARITY Act as it currently stands falls short… We have been working in good faith with our Republican colleagues for the past year and will continue doing so to get this over the finish line,” the statement read

According to Semafor, Alsobrooks said she will oppose the crypto bill unless Republicans strengthen its ethics rules. She criticized the draft for relying only on the Justice Department to enforce them and called that approach “wild and unserious and stone crazy.” She wants state attorneys general empowered to act if the DOJ does not.

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Meanwhile, the banking industry is also seeking changes. Six trade groups, led by the American Bankers Association (ABA), signed a joint statement on deposit risk.

“The latest version of the Digital Asset Market Clarity Act released today in the Senate still puts at risk the local lending that drives economic activity in the US,” they said.

Majority Leader John Thune plans to bring the bill to the floor next week. Whether the revised text wins enough Democratic support remains the key question.

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Source: BeInCrypto