Bank trade groups, 18 state attorneys general, and Senator Elizabeth Warren all pushed back against the revised Digital Asset Market Clarity Act, hours before the Senate procedural vote that will decide the bill’s fate.
Republicans published the updated text and described it as a final offer to Democrats. The Senate holds a cloture vote Tuesday afternoon, and the motion needs 60 votes to advance.
Banks Want the Clarity Act Text Tightened, State AGs Want It Stopped
Eight banking trade groups, including the American Bankers Association and the Independent Community Bankers of America, wrote to Majority Leader John Thune and Democratic Leader Chuck Schumer on September 14.
They argue that the drafting of the stablecoin yield ban leaves room for interest-like payments on balances. The groups put forward a list of recommended amendments to the crypto market structure bill.
“With the targeted changes described above, we believe that this innovation can be pursued while also protecting the ability of banks to continue providing credit for America’s consumers, small businesses, and communities,” the letter reads.
New York Attorney General Letitia James led a separate coalition of 17 other attorneys general opposing the bill outright. Their letter to Senators Tim Scott and Elizabeth Warren warns that federal preemption would strip state registration regimes and hand the Securities and Exchange Commission (SEC) unilateral discretion over its scope.
James cited FBI data showing $11.4 billion in crypto fraud losses during 2025, up 22% from the prior year. States have brought more than 330 anti-fraud actions since 2017.
“As written, the Clarity Act would embolden scammers and potentially strip attorneys general of our authority to protect our states’ investors and their wallets. Together with my attorney general colleagues, I urge Congress not to pass the Clarity Act,” she said.
Neither objection is new. Both camps made the same arguments to the Senate in July.
Warren Attacks the Ethics Language as Democrats Counter
Meanwhile, Warren rejected the ethics provision Republicans added to the text.
“We got the details of President Trump and Republicans’ quote “final offer” on ethics, and it reads exactly like what you expect the most corrupt President in our history to bless: a weak fig leaf that will do nothing to stop him from making his next $1.4 billion in crypto profits,” she stated.
She raised two objections. According to the Senator, the provision hands enforcement power to the President’s political appointees, who can switch it off. It also carries loopholes that leave his crypto businesses, including World Liberty Financial, untouched.
Not every Democrat wrote off the text. The negotiators met in Schumer’s office on Monday evening to send back a counteroffer, Politico reported. Senator Raphael Warnock said Republicans would receive the text that night.
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Cloture needs 60 votes, so Republicans must peel off seven Democrats. Senator Cynthia Lummis has sold the text as carrying over 100 Democrat-requested changes. Tuesday afternoon will show whether that pitch survived.
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The post Revised Clarity Act Text Meets Three-Front Pushback Before Senate Vote appeared first on BeInCrypto.
