Senate Democrats Pitch Clarity Act Counteroffer Before Vote

Senate Democrats delivered a counterproposal on the Digital Asset Market Clarity Act to their Republican colleagues late Monday. The move arrived on the eve of the bill first procedural vote following a meeting in Minority Leader Chuck Schumer office. Republicans had previously circulated a new draft featuring 126 changes requested by Democrats.

Despite the changes, major disputes remain centered around ethics provisions. Senator Elizabeth Warren and other Democrats raised concerns that the current language shields the president from proper enforcement and leaves room for conflicts of interest. Republican Senator Cynthia Lummis stated that negotiations had reached their limit, noting that some lawmakers would oppose the text regardless of adjustments.

Additional pressure came from outside the Senate as 18 state attorneys general urged a no vote over concerns about blocking local fraud cases. Banking groups also pushed for tighter limits on stablecoin rewards. Tuesday cloture vote requires 60 senators to advance, and market watchers are waiting to see if the bill survives this hurdle.