Summary
- A revised CLARITY Act draft has been released in the US Senate, and further negotiations are set to continue on ethics and illicit finance provisions.
- The bill includes provisions related to the Bank Secrecy Act (BSA), anti-money laundering, decentralized finance (DeFi) and crypto ATM fraud.
- It also includes a safe-harbor provision allowing crypto platforms to freeze assets linked to suspicious transactions, while a Senate vote has yet to be scheduled.
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A revised draft of the CLARITY Act, the US Senate's digital-asset market structure bill, has been released, with further negotiations expected on key ethics and illicit-finance provisions.
CoinDesk reported on July 22 that Republican Senator Cynthia Lummis, who is leading negotiations on the CLARITY Act, said the newly released text is not final and could be revised to reflect additional feedback.
"We're now at the point where we can show everyone the combined bill we'll vote on and get input from stakeholders, including the industry that will be subject to regulation," Lummis said. "I'm pleased we've reached this stage."
Negotiations over ethics provisions addressing conflicts of interest involving government officials are set to continue through the weekend. Some illicit-finance provisions are also still under discussion.
A central sticking point in the ethics talks is whether state attorneys general should have enforcement authority. Lummis said Republicans and Democrats have negotiated for weeks but have not resolved whether state attorneys general should be allowed to bring criminal or civil cases against people covered by the ethics rules.
The ethics provisions currently apply not only to the president, but also to members of Congress, senior federal judges and their spouses.
Additional talks may also be held on illicit-finance rules. The current draft includes provisions related to the Bank Secrecy Act, anti-money laundering, sanctions on exchanges and decentralized finance, or DeFi, as well as language on crypto ATM fraud requested by law enforcement agencies.
The bill also includes a safe-harbor provision that would allow crypto platforms to freeze assets tied to suspicious transactions. The measure would provide legal protection for companies working with law enforcement to block suspicious assets.
A Senate floor vote on the CLARITY Act has not been scheduled. The bill needs at least 60 votes to pass the Senate, which is set to begin its summer recess on Aug. 7.
