NEW: Senate Republicans have just released an updated version of the Clarity Act following briefing calls with stakeholders this morning. Here are some of the key provisions in the latest text, including ethics, the BRCA and other areas we’ve been following closely.

The ethics package was negotiated between the White House and GOP senators @Senator Cynthia Lummis and @Bernie Moreno, and does not have sign-off from Democrats: Bans the President, Vice President, Members of Congress, federal judges and other covered officials (and their spouses) from issuing or sponsoring digital assets for compensation while in office with a sunset date of January 20, 2029. Requires covered officials to either sell their crypto holdings and investments in crypto companies or place them in a blind trust they do not control, or both. Gives the Department of Justice civil enforcement authority over ethics violations, including the ability to sue exchanges that knowingly list prohibited tokens. Requires disclosure of crypto sales over $1K and directs the Government Accountability Office to study additional ethics gaps. It’s worth noting that this section will likely change. Democrats, who say they still have not seen the text are strongly opposed to the proposal to put the DOJ in charge of enforcement without state attorneys general having a role. Bipartisan negotiations are expected over the coming days.

The Blockchain Regulatory Certainty Act (BRCA): Industry sources say the BRCA is unchanged from the version that cleared the Senate Banking Committee in May. It continues to clarify that non-custodial software developers and blockchain infrastructure providers are not treated as money transmitters solely because they build or maintain decentralized networks. The Lummis-Grassley amendment also remains, preserving existing federal criminal liability for anyone who “knowingly” facilitates illicit transactions. The Keep Your Coins Act is also intact, preserving individuals’ right to self-custody their own crypto.

Stablecoin yield: Despite speculation that @Senator Thom Tillis might throw the banks a bone by adding “circuit breaker” language, this section is unchanged from the version that cleared the Senate Banking Committee, preserving the Tillis-Alsobrooks compromise. To recap: It prohibits companies from paying interest on users’ idle payment stablecoin balances but allows rewards tied to actual activity, such as transactions or staking, as long as those rewards are not economically or functionally equivalent to interest on a bank deposit.

Law enforcement: A new section of the bill is entirely dedicated to strengthening law enforcement’s ability to investigate crypto-related crime. Increases funding for state and local crypto investigations and blockchain analytics tools. Creates new training programs for law enforcement and prosecutors. Establishes a “cyber center” to combat threats from nation-state actors like North Korea and Iran. Creates a public-private task force to coordinate efforts against crypto fraud. Requires stablecoin issuers to comply with lawful orders to freeze, seize, burn, and reissue tokens when appropriate.

Bankruptcy protections: While not a new section, it’s worth highlighting that the bill lays out rules for how digital assets would be treated if an exchange or custodian went bankrupt. It helps ensure customer assets receive the same protections as traditional financial assets and remain the property of customers rather than becoming part of the company’s bankruptcy estate. This could help prevent another FTX-like situation. Stay tuned for more on the new text and reaction in the @Crypto In America newsletter.

Read the full 616 page bill text here: https://www.lummis.senate.gov/wp-content/uploads/Clarity-Act.pdf…