Republican Senator Rejects Democratic Counteroffer Hours Before Clarity Act Vote

Senate Republicans pushed back Tuesday against a Democratic counterproposal on the Clarity Act, leaving the crypto market structure bill’s path uncertain just hours before its first procedural vote.

Dispute Centers On Ethics Provisions

Democrats sent their counteroffer Monday night, seeking changes to a contested ethics provision meant to address the president’s growing crypto related income. This followed Republicans releasing what they called a final draft over the weekend, which would let state attorneys general sue crypto exchanges and the Justice Department under certain conditions, and would require public officials to divest significant financial holdings or place them in a blind trust. One Democratic senator argued the language still leaves loopholes, since enforcement against the president would depend on the Justice Department’s discretion to act.

Republicans Say Little Has Changed

A spokesperson for the lead Republican negotiator said the Democrats’ latest proposal looked nearly identical to demands made weeks earlier, calling for actual negotiation rather than repeated requests. A Democratic senator countered that the language reflects positions Democrats have held for close to a year, framing the counteroffer as consistent rather than new.

The Senate’s first procedural vote on the bill, requiring 60 votes to advance, was scheduled for later Tuesday, with expectations that it may fail to clear that threshold given the lack of Democratic support. A successful vote would still require additional Senate approval before the bill could move to the House and eventually the president’s desk.