Seven Senate Democrats announced their opposition to the revised CLARITY Act, saying the updated bill text still falls short even after the addition of ethics rules barring public officials from issuing digital assets.

The 616-page bill requires 60 votes to clear the Senate, and this opposition complicates the path to that threshold ahead of the August recess. Republicans hold a narrow Senate majority, meaning GOP leadership needs at least seven Democratic votes to advance the legislation under regular order.

What the New CLARITY Act Text Adds

Senate Republicans released the 616-page bill, formally designated H.R. 3633, on Wednesday. The Digital Asset Market Clarity Act establishes a federal framework for cryptocurrency oversight, dividing regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The split between the two agencies has been a long-standing point of contention in crypto policy, with the SEC asserting jurisdiction over most digital assets as securities and the CFTC overseeing commodities — a dispute that has fueled years of enforcement uncertainty for the industry.

Only two sections are new since the May draft. The additions consist of ethics requirements and a law enforcement section granting stablecoin seizure powers. The ethics provision prohibits covered officials from issuing or sponsoring a digital asset in exchange for consideration. Covered officials include the President, Vice President, and members of Congress, as well as their spouses, throughout their time in office. The agreement sunsets on January 20, 2029, which coincides with the end of the next presidential term.

Democrats and Banks Seek Changes

The ethics addition was not sufficient to win Democratic support. Senators Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock stated that the language still needs improvement in areas including consumer protection, illicit finance, and market integrity.

"The Republican-proposed text of the CLARITY ACT as it currently stands falls short… We have been working in good faith with our Republican colleagues for the past year and will continue doing so to get this over the finish line," the senators said in a statement.

According to Semafor, Alsobrooks said she will oppose the crypto bill unless Republicans strengthen its ethics rules. She criticized the draft for relying solely on the Justice Department for enforcement, calling that approach "wild and unserious and stone crazy." She wants state attorneys general empowered to act if the DOJ does not.

The new draft of the Senate GOP crypto bill does nothing to stop President Trump from making his next $1.4 billion from crypto. It'll supercharge Trump's crypto corruption. This bill should be dead on arrival. pic.twitter.com/HuNY52n3ex — Elizabeth Warren (@SenWarren) July 22, 2026

Meanwhile, the banking industry is also seeking changes. Six trade groups, led by the American Bankers Association (ABA), signed a joint statement on deposit risk. Banks have warned that stablecoins and other digital asset products could draw deposits away from traditional lenders, potentially reducing the funding base that supports local lending.

"The latest version of the Digital Asset Market Clarity Act released today in the Senate still puts at risk the local lending that drives economic activity in the US," they said.

Majority Leader John Thune plans to bring the bill to the floor next week. Whether the revised text can win enough Democratic support remains the key question, with both the scope of enforcement authority and the treatment of bank deposits among the unresolved issues shaping negotiations.