Democratic Senator Backs Clarity Act With Proposed Law Enforcement Changes: Report
Key Takeaways
- •Senator Catherine Cortez Masto and two law enforcement groups said they were positive about proposed changes to the Clarity Act.
- •The revised language was sent to the White House and is aimed at resolving a disputed section covering developer liability for illicit activity by others on their platforms.
- •The latest draft includes ethics provisions that would bar officials and their families from issuing or promoting crypto.
- •The Clarity Act passed the House last year but remains deadlocked in 2026 amid unresolved concerns from Democrats and the banking lobby.
- •Lawmakers are still trying to advance the bill before the August recess, and major institutions such as Fidelity and Goldman Sachs have said the revised version works in its current form.
Democratic Senator Backs Clarity Act With 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, felt “good” about proposed changes to the bill, according to a news report.
Cortez, together with the National Association of Assistant U.S. Attorneys and the National District Attorneys Association, backed revisions 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. Many lawmakers are hoping the Clarity Act, which would establish crypto regulation in the U.S., is passed before Congress leaves for the August recess. However, some sticking points remain, particularly among Democrats, underscoring how the measure is still working through both policy and ethics concerns even as support builds around parts of the proposal.
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 concern 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 bars officials and their families from issuing or promoting crypto, a provision lawmakers had previously objected to.
The Clarity Act was passed last year by the House of Representatives but remained deadlocked in 2026 as regulators and banking chiefs worked on a revised version of the bill.
The banking lobby has raised concerns about stablecoins and the yield they could potentially pay customers, while some Democrats believe the bill falls short on ethical issues. Those unresolved questions have kept attention on the latest draft, which is being reviewed across several stakeholder groups rather than moving forward on a single-track timeline.
Even so, Republicans and Democrats have continued working on the legislation, despite crypto policy 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 article first appeared on Bitcoin Magazine and is written by Mathew Di Salvo. It links to the original report here: