CLARITY Act: The Vote on the Final Text is Near, but Ethics Provisions Could Derail It
The Senate votes on the CLARITY Act crypto bill text amid fierce debate over the 2029 sunset clause and a major ethics loophole for politicians' children.
The Bright Recap
The new CLARITY Act text is out. Sen. Lummis shared it on X one day before the session that will require a 60-vote cloture threshold to pass the bill.
The text addresses 126 requests Democrats made after reviewing the last version of the bill, but some ethics provision could still derail the vote.
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Bright Answers
What is the primary purpose of the upcoming Senate vote on the CLARITY Act?
The vote scheduled for September 15, 2026, is a procedural cloture vote. It does not automatically turn the bill into a law. Instead, it requires a 60-vote supermajority to stop any potential filibuster and allow the Senate to formally debate and modify the newly released 635-page text.
Why are the ethics provisions causing so much debate among lawmakers?
Democrats refuse to support a major crypto regulatory bill without ironclad conflict-of-interest protections. This has become an urgent issue because President Trump and his family hold active commercial interests and licensing deals in the crypto space, leading to concerns that a loose bill could directly enrich the administration.
What are the two major loopholes in the current text that could prevent it from passing?
First is the "Children Loophole," which bans top officials and their spouses from launching tokens but exempts their adult children, allowing family members to continue profiting. Second is the 2029 Sunset Clause, which dictates that these strict ethics rules will completely expire at the end of the current presidential term.
On September 14, 2026, Sen. Cynthia Lummis shared on X the final text of the CLARITY Act. The post comes one day before the session that will require a 60-vote cloture threshold to pass the bill.
The timing is strict. After over one year of negotiations, the new text is out, but the upcoming midterm elections and the sections that required the most attention might prevent the bill from passing this year.
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The ethics provisions
One of the primary roadblocks that previously prevented the bill from passing is the inclusion of ethics provisions. Democrats contested any bill that would not prevent the personal financial gains of politicians. This topic became particularly sensitive because of the Trump administration, since the family of the U.S. President and Trump himself have close connections and commercial interests in the crypto space.
Sen. Lummis addressed this point in her post: "President Trump voluntarily agreed to new ethics provisions holding every federally elected official, judge, and their spouses to some of the toughest ethics restrictions in U.S. history."
According to Lummis, the new final text includes 126 substantive changes requested by Democrats across the bill. A "no" vote, she added, would imply the refusal of the strongest ethical design, and would leave the U.S. without a significant leading position in a field worth almost $3 trillion at the time of writing.
The Democrats' fight on ethics provisions
Senators Gallego and Tillis did not immediately comment on the new text, despite being two of the major critics of the previous CLARITY Act versions specifically for missing these strict ethics provisions. They had pushed to address Trump's personal profits in crypto—mainly generated via World Liberty Financial and the TRUMP memecoin.
The fight over the ethics provisions began because Democrats firmly believed that creating a crypto-regulation bill without those clarifications would lead to a framework designed to support the financial interests of President Trump.
The new CLARITY Act text came with a list of the amendments made to address Democrats' requests. Among the ones related to ethics provisions, we can see a ban for top officials and their spouses from launching crypto projects or owning large stakes in crypto companies, alongside the obligation to report crypto activities or put them into a blind trust.
Despite these demands being addressed, two specific loopholes in the ethics provisions might still derail the approval of the new CLARITY Act text.
The Children Loophole and the 2029 Sunset Clause
While spouses are specifically mentioned, no restrictions imply that the children of top officials are banned from launching crypto projects or joining significant corporate activities. In practical terms, members of the Trump family could still benefit from crypto profits made out of such activities.
Moreover, these ethics provisions are not indefinite. They legally expire at noon on January 20, 2029, which coincides with the end of the current presidential term.
Will the CLARITY Act pass?
The chances for such a fundamental bill to pass right before the midterms are historically low. Despite major proponents of the crypto industry, like Coinbase's Brian Armstrong, and Republicans actively supporting the bill, traditional bankers and key Democrats are still not completely satisfied by the current setup.
The vote is scheduled to happen on September 15, 2026. Then we will know if the current text will take another major step toward becoming law.
Editor's note
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