Senate Majority Leader Chuck Schumer has called a Democratic caucus meeting for Sunday evening to decide the party's position on the CLARITY Act before Tuesday's cloture vote. Ethics disputes over official crypto divestments and banking-industry objections to stablecoin rewards have pushed most Democrats toward voting against the bill, with prediction markets putting its odds of passing this year at just 25%.
Schumer sets up a decisive vote
Senate Majority Leader Chuck Schumer has called a caucus meeting for Sunday evening to settle Senate Democrats' stance on the Digital Asset Market Clarity Act, known as the CLARITY bill. The meeting follows a new draft that Senate Republicans circulated last Thursday with over 100 changes allegedly requested by Democrats.
The Senate will vote Tuesday on whether to advance a cloture vote on the bill or drop it entirely. Republicans are pushing colleagues to keep the bill alive while negotiations continue, but most Democrats are now expected to vote against it, as disagreements over the ethics provision and stablecoin-yield rules remain unresolved.
Ethics and stablecoin rewards stall the deal
President Donald Trump met with advisors on Friday to weigh new language on the ethics provisions. It remains unclear whether he will accept Democrats' proposal requiring public officials to divest current crypto holdings. Senator Chris Van Hollen argued on social media that the bill "does nothing to stop Trump's crypto corruption or the use of crypto by bad actors."
Separately, a coalition of 77 state banking associations sent a letter to Senate leadership on September 10, backed by the American Bankers Association and the Independent Community Bankers of America. The letter asks the Senate to amend Section 10404(c)(1) and delete subsection 10404(3)(B) of the bill to close what the groups call a loophole for balance-based stablecoin rewards, a provision widely read as targeting Coinbase's USDC rewards program. The banking groups warn the rewards could pull deposits away from community banks and reduce credit available for mortgages and small-business loans. A similar letter with 76 associations was sent in July 2026.
Narrow path to passage
CLARITY needs at least seven Democrats to back discussion on Tuesday if all 53 Senate Republicans vote in favor. Some Republicans have also objected to the current stablecoin-yield language and say they would vote against the bill unless it changes. Prediction market Polymarket puts the odds of passage this year at 25%, up from an all-time low of 14%, even as the White House pushes for the bill's passage to keep pace with China on digital-asset policy.
Sources: Bitcoin News, Crypto Briefing
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