Democrats Reject GOP's "Final" Offer Senate Democrats are preparing a counterproposal to the latest Republican text of the Digital Asset Market Clarity (CLARITY) Act, throwing fresh uncertain
Senate Democrats are preparing a counterproposal to the latest Republican text of the Digital Asset Market Clarity (CLARITY) Act, throwing fresh uncertainty over the landmark crypto market structure bill. The move comes despite Republicans releasing their revised draft on Sunday and labelling it their "last, best and final offer."
Democrats working on the bill met in Senate Minority Leader Chuck Schumer's office on Monday, according to Politico."The Democrats who've been working on this in good faith are sending a counterproposal," Senator Mark Warner told Politico as he exited the meeting.
Senator Ruben Gallego, who has been negotiating on the crypto bill for a while, is leading the charge with the counterproposal.Senators Warner and Gallego have reportedly said the ethics language in the final text is insufficient, even though it enables state Attorneys General to enforce the provision.
Democrats previously stated that the Republican-proposed text of the CLARITY Act "falls short," arguing that key provisions addressing ethics for elected officials, consumer protection, illicit finance, conflicts of interest, and market integrity must be strengthened.
A coalition of Attorneys General, led by New York AG Letitia James, has also opposed the latest CLARITY Act text, arguing that the crypto bill will make it harder for states to take action against crypto fraud.Even within Republican ranks, doubts persist. Senator Susan Collins noted: "It's more than 600 pages, with a new ethics provision in it, and other provisions that I need to look at, such as whether it would cause community banks to lose deposits."
The counterproposal comes ahead of a crucial Senate procedural vote on Tuesday, which will determine whether the Senate can advance the bill toward floor consideration.The bill needs 60 votes on Tuesday just to move forward to debate, not final passage.If cloture fails, the CLARITY Act will effectively be dead for the remainder of 2026, with Senator Cynthia Lummis warning that the next realistic opportunity may not arrive until 2030.
The Digital Asset Market Clarity Act passed the House 294 to 134 in July 2025 with 78 Democrats voting yes, and the Senate Banking Committee advanced it by a vote of 15 to 9 on May 14, 2026. Whether it can clear the Senate remains an open question.
Sources:CoinTelegraph: Democrats Counter GOP's Final CLARITY Act OfferCNBC: Warren to Rip Clarity Act on Senate Floor Ahead of Key Preliminary VoteCoinDesk: Key Democratic Lawmakers Say Crypto Clarity Act Falls Short on Ethics
