Senate cloture test on CLARITY Act set for Sept. 15

The Senate plans a cloture vote at 2:15 p.m. on Sept. 15 to decide whether to proceed to H.R. 3633, known as the CLARITY Act. The motion to proceed requires 60 votes to end debate and start an amendment process.

If cloture succeeds, senators will be able to offer amendments and debate unresolved provisions. If it fails, the bill is unlikely to reach the floor for amendment unless negotiators develop a new approach.

Republican negotiators circulated a revised substitute text, labeled EHF26718, that expands Section 20209 to cover “software developer protections and non-decentralized finance trading protocols.” The addition would create a Commodity Futures Trading Commission framework to determine when a protocol described as decentralized is actually controlled by an identifiable party and should be treated like an intermediary.

Section 10301 of the bill already assigns oversight of certain non-decentralized finance trading protocols to the Securities and Exchange Commission. The substitute would create parallel CFTC responsibilities tied to control and function, leaving both agencies with distinct roles depending on how a protocol operates.

The revised text preserves limits on DeFi protections to spot transactions included in the July draft and adds a mechanism for the CFTC to identify centrally administered protocols that could face intermediary rules. Lawmakers who raised concerns in July sought limits to any DeFi exemption, preservation of the Indian Gaming Regulatory Act and Tribal-state compacts, and prohibitions on certain event contracts.

Senators Lisa Murkowski and Brian Schatz have urged the CFTC to consult Tribal governments and respect federal Indian gaming law while it develops guidance for event-based markets. As of Sept. 10, the senators who signed the July letter have not publicly indicated the revised substitute changed their positions.

The Senate arithmetic remains a challenge for Republicans, who hold 53 seats and therefore need at least seven additional votes for cloture. The National Sheriffs’ Association moved from opposing the bill to a neutral stance after changes addressed illicit-finance concerns, showing discrete concessions can change outside support.

Internal Republican concerns include proposed ethics limits on public officials’ crypto interests and rules governing stablecoin reward programs. Some senators have sought restrictions on investments, gifts or rewards tied to crypto firms. Sponsors’ summaries say permitted rewards may be offered for actions such as opening an account, making payments and providing liquidity, while banks argue those programs can function like interest and shift deposits from regulated banks.

White House digital assets adviser Patrick Witt urged senators to proceed to the bill and continue negotiating on the floor, urging them to ‘get on the bill and let’s keep talking.’ A successful cloture vote would preserve a path for amendment votes on ethics, stablecoin design and Tribal policy; a failed vote would remove that procedural route.

Republican negotiators described the substitute as an effort to shore up support while deferring decisive disputes to amendment debate. The Senate’s September schedule is limited, making the Sept. 15 cloture vote a time-sensitive test of whether negotiators can move the bill onto the floor for further work.