Senate Republicans Revise CLARITY Act to Address Ethics and Stablecoin Issues
- The updated CLARITY Act draft includes new ethics rules requiring divestment or blind trust for crypto-linked financial interests.
- State attorneys general are empowered to enforce digital asset prohibitions under the revised bill.
- Developers are shielded from money transmission laws, creating a safe harbor for blockchain activities in the U.S.
- The Treasury Secretary is granted authority to restrict stablecoin rewards if large deposit flights occur.
- Polymarket predicts a 30% chance of the bill passing after these amendments, with a Senate vote scheduled for Tuesday.
The revised CLARITY Act aims to address bipartisan concerns by incorporating strict ethics rules and allowing state-level enforcement against prohibited digital assets. The changes also provide regulatory relief for blockchain developers and manage potential risks associated with stablecoins.
With the updated provisions, the likelihood of passing has increased, as reflected by Polymarket’s prediction market estimation, although securing enough Democratic votes remains uncertain. (Source)
