Democrats 'Move the Goalposts' on Clarity Act Hours Before Key Senate Vote

In brief

• The Clarity Act faces its first Senate floor test Tuesday, needing 60 votes to advance; Republicans say their Sunday text makes major concessions on ethics, developer protections and the Ag title, plus a new stablecoin "circuit breaker."
• Democrats sent a counteroffer Monday seeking tighter ethics, Blockchain Regulatory Certainty Act and Ag title changes—prompting Republicans to accuse them of "moving the goalposts"—while the White House signaled little appetite for further talks.
• The outcome hinges on politics, not policy: some Republicans remain wavering over bank objections, though Mitch McConnell's return could help the headcount.

Good morning from Washington, D.C., where later today the Clarity Act will face its first big test on the Senate floor.

In order to advance, the bill needs 60 senators to vote to invoke cloture and move toward formal floor debate. Getting this far has taken over a year of Senate negotiations and more than five years of attempts by Congress to pass comprehensive crypto market structure legislation.

The 2:15 p.m. ET vote comes after Senate Republicans released updated text Sunday evening that they say makes major concessions on ethics, software developer protections and the Ag title, while adding a new “circuit breaker” aimed at addressing concerns that stablecoin yield could drive deposit flight from community banks.