Democratic senators sent Republicans a counterproposal to the CLARITY Act ahead of a September 15 procedural vote, Politico reported, citing sources familiar with the talks. The move matters because advancing the bill requires at least 60 votes, meaning Republicans need support from some Democrats while restrictions on crypto-related business activities by senior officials remain a key point of contention.

Details of the Democratic proposal had not been disclosed as of publication. Politico journalist Jasper Goodman said Democrats discussed their next steps during a meeting in Senate Minority Leader Chuck Schumer’s office.

Dispute over ethics enforcement

The latest negotiations began after Senators Cynthia Lummis, John Boozman and Tim Scott introduced the final version of the CLARITY Act on September 14. The draft included 126 changes proposed by Democrats, including new restrictions on officials with ties to crypto businesses.

Some Democrats said those concessions did not go far enough. According to CoinDesk, their concerns focus primarily on how the ethics restrictions would be enforced.

Democrats are particularly concerned that state attorneys general would be unable to initiate proceedings directly against the U.S. president and that the Office of Government Ethics could grant exemptions to individual officials.

Democratic Senator Mark Warner confirmed that the party had prepared a counterproposal, although Democrats had not reached a unified position on the bill.

Senator Kirsten Gillibrand, who worked on crypto-market legislation, is urging colleagues to support advancing the CLARITY Act procedurally, Goodman reported. Doing so would allow senators to continue debating the legislation and introduce amendments after the vote.

Senator Elizabeth Warren, however, criticized the final draft. She called the proposed restrictions “a weak cover” and said they would not eliminate the potential for President Donald Trump to face a conflict of interest in the crypto industry.

Lummis, by contrast, said Republicans had already made significant concessions and did not intend to revise the legislation materially. She said the current version represented the most the two sides could achieve through negotiations.

Senate vote

The Senate is scheduled to hold the procedural vote at 9:15 p.m. Kyiv time on September 15. If at least 60 senators vote to advance the measure, the Senate can continue considering it and proceed to the next stages of the legislative process.

The CLARITY Act would establish a federal framework for regulating the digital-asset market and divide authority among regulators.

Source: Incrypted