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Crypto Regulation

Republicans Release Final CLARITY Act Text Ahead of Cloture Vote

Republicans posted the final text of the CLARITY Act one day before a Senate cloture vote. The ethics section removes the Jan. 20, 2029 sunset, reverses the July draft’s bar on state attorney general enforcement, and raises civil penalties from 10% of the take or $500,000, whichever is less, to 20% or $500,000, whichever is greater. The bans on issuing and sponsoring digital assets reach further.

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AI take

The removal of the sunset and the reversal on state AG enforcement point to a durable, more aggressively enforced framework rather than a temporary one, while the higher penalty ceiling and broader issuance and sponsorship bans signal that compliance risk is being pushed onto sponsors and issuers rather than the states. That shift matters most for projects weighing U.S. issuance and for the state regulators who lose a lever. The open question is whether the cloture vote holds the text intact, since the ethics provisions remain the most politically exposed part of the bill.

Generated by AI for reference only.

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