Revised Clarity Act Faces Triple Opposition Ahead of Senate Vote

Banking trade groups, 18 state attorneys general, and Senator Elizabeth Warren have all voiced opposition to the amended Digital Asset Market Clarity Act, just hours before a key Senate procedural vote. The vote will determine the bill's fate.

Republicans released the latest wording of the bill as a final offer to Democrats, with the Senate set to hold a procedural vote on Tuesday afternoon requiring 60 votes for passage.

The American Bankers Association and eight banking trade groups sent a letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer on September 14. They argued that a stablecoin revenue prohibition clause could allow interest-like payments on balances, urging stronger language in the clarity bill. The groups also provided a list of recommended amendments.

New York Attorney General Letitia James led a coalition of 17 other state attorneys general in opposing the bill through a separate letter to Senators Tim Scott and Elizabeth Warren. They warned that federal preemption would eliminate state registration systems and grant unilateral discretion to the SEC.

James cited FBI data showing cryptocurrency fraud losses reached $11.4 billion in 2025, a 22% increase from the previous year. States have implemented over 330 fraud prevention measures since 2017. This opposition is not new; both sides presented similar arguments to the Senate in July.

Warren rejected an ethics provision added by Republicans, arguing it grants enforcement authority to presidential appointees who could ignore it at will and contains loopholes for her cryptocurrency companies like World Liberty Financial. Not all Democrats viewed the bill negatively; a negotiating team met Monday evening at Schumer's office to prepare a counterproposal, with Senator Raphael Warnock stating that the Republican draft would be received by Democrats later that night.