Democratic Senator Backs Clarity Act After Proposed Law Enforcement Changes: Report
Key Takeaways
- •Catherine Cortez Masto and two law enforcement associations supported proposed Clarity Act changes and said they felt good about the prospects for resolving the issue.
- •The proposed revisions were sent to the White House and are part of ongoing efforts to pass the bill before Congress begins its August recess.
- •One change would refine language protecting some crypto developers and firms from prosecution for illegal acts committed by others using their platforms.
- •The latest draft also includes ethics provisions that would bar officials and their families from issuing or promoting crypto.
- •The Clarity Act passed the House last year but has remained deadlocked in 2026 amid concerns from Democrats, bankers, and regulators.
Bitcoin Magazine
Democratic Senator Backs Clarity Act After Proposed Law Enforcement Changes: Report
Bipartisan work on the long-awaited Clarity Act continues after Democratic Senator Catherine Cortez Masto said that she, along with two law enforcement groups, feels “good” about proposed changes to the bill, according to a news report.
Along with the National Association of Assistant U.S. Attorneys and the National District Attorneys Association, Cortez Masto supported changes to the bill and said they felt positive about “the chance to resolve this issue once and for all,” according to a POLITICO report.
The changes were sent to the White House. A number of lawmakers are hoping the Clarity Act — which would establish crypto regulation in the U.S. — is passed before Congress leaves for its August recess. That timeline adds pressure to negotiations, since the bill has already been through the House and now depends on lawmakers resolving remaining disagreements in the Senate and among outside stakeholders. But some sticking points remain, particularly among Democrats.
JUST IN: Sen. Catherine Cortez Masto backs the new CLARITY ACT proposal sent to the White House saying: "We feel good about the chance to resolve this issue once and for all" – POLITICO pic.twitter.com/Bn3b7dcz8e — Bitcoin Magazine (@BitcoinMagazine) July 29, 2026
According to the news report, the changes proposed by the law enforcement groups relate to a small section of the bill that seeks to protect some crypto software developers and firms from being prosecuted for illicit activity committed by others on the platforms they create.
A new version of the Clarity Act has been circulating among lawmakers since last week. It includes changes related to ethics and would ban officials and their families from issuing or promoting crypto, an issue lawmakers had previously raised concerns about.
The Clarity Act passed the House of Representatives last year but has been deadlocked in 2026 while regulators and banking leaders work on a revised version of the bill.
The banking lobby has raised concerns about stablecoins and the yield they could potentially pay customers, and some Democrats say the bill falls short on ethical issues. Those objections help explain why the revised draft has focused on both enforcement language and conflict-of-interest rules, as lawmakers try to address separate regulatory and political concerns in one package.
Even so, the bill has been worked on by both Republicans and Democrats, despite crypto legislation being a priority for pro-crypto President Donald Trump.
Major institutions including Fidelity and Goldman Sachs, as well as crypto lobby groups and politicians, have said the revised bill works in its current form.
This post, Democratic Senator Backs Clarity Act — With Proposed Law Enforcement Changes Included: Report, first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.