US Senate Republicans release new crypto bill text ahead of critical vote

U.S. Senate Republicans unveiled a revised draft of cryptocurrency legislation on Sunday, aiming to address Democrats' concerns over ethics provisions and banking industry worries about lending. The Clarity Act, which seeks to establish a regulatory framework for cryptocurrencies, has been stalled due to disagreements over the bill's ability to protect against illicit finance and potential instability to the banking system.

On Monday, Republican senators Cynthia Lummis, John Boozman, and Tim Scott announced that 126 substantive changes, requested by Democrats, had been incorporated into the new text. However, the bill's prospects remain uncertain as it is unclear if it will receive the 60 votes needed to pass a key procedural vote on Tuesday. Democrats, who have been pushing for stricter restrictions on public officeholders profiting off their own crypto ventures, including those of President Trump's World Liberty Financial, are awaiting a response from Democrats.

While the revised version of the bill partially addresses Democrats' demands, it may not fully satisfy them. The banking industry remains opposed to certain provisions that could allow stablecoins to compete with bank deposits, potentially stifling lending.