The Daily: Senate Republicans unveil 'final' Clarity Act as Trump accepts ethics limits, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Monday! Bitcoin is still holding above $78,000, though 21Shares Head of Macro Stephen Coltman warned that potential Fed and Bank of Japan rate hikes this week could add to a tightening global liquidity backdrop.

In today's newsletter, Senate Republicans release their new version of the Clarity Act, Bernstein says any positive surprise on the bill's passage is "definitely not priced in," New York Attorney General Letitia James leads a bipartisan push against the legislation, and more.

Meanwhile, CryptoQuant says bitcoin must clear resistance at $81,700 to confirm a new bull market.

P.S. Don't forget to check out The Funding, a biweekly rundown of crypto VC trends. It's a great read — and just like The Daily, it's free to subscribe!

Senate Republicans release 'final' Clarity Act draft as Trump accepts most ethics provisions

Senate Republicans released what they called the "final" Clarity Act draft ahead of Tuesday's cloture vote, incorporating 126 "substantive changes" requested by Democrats.

• Republicans said the new version reflects most of the Tillis-Gallego ethics proposal, including a role for state attorneys general in enforcing conflict-of-interest rules.
• Trump has reportedly agreed to most of the ethics language, which covers the president, vice president, members of Congress, and their spouses, though notably excludes other family members like their children.
• The draft also gives the Treasury secretary authority to impose an 18-month "circuit breaker" to curb stablecoin rewards if they trigger heavy deposit outflows from community banks to help address a key banking industry concern.
• The bill still faces a tough path, with Tuesday's procedural vote requiring approval from 60 senators, meaning at least seven Democrats or independents must join all 53 Republicans for the bill to proceed.
• Cloture would only begin debate, as amendments, final passage, and House action on the Senate substitute would still have to fit into a few remaining session weeks before the midterm campaign period.

Bernstein sees more Clarity Act progress than markets expected, says 'any positive surprise is definitely not priced in'

Analysts at Bernstein said there may be more progress on the Clarity Act than markets expected, arguing "any positive surprise is definitely not priced in" ahead of Tuesday's cloture vote.

• The analysts said the ethics offer is "probably as good as it gets," arguing that the White House's acceptance of a state-AG enforcement role could win over the handful of Democrats needed to advance the bill.
• Bernstein said the Clarity Act failing to pass would be "the worst outcome," even for the banking lobby, as without it third-party platforms could keep offering full yield on idle stablecoin balances.
• The analysts warned a hawkish Fed plus a failed vote could still trigger a "major drawdown," with current positioning carrying a bearish bias.

NY Attorney General James leads bipartisan push against the Clarity Act ahead of initial Senate vote

New York Attorney General Letitia James led a group of 17 bipartisan attorneys general urging lawmakers to reject the Clarity Act, warning it would weaken their ability to protect investors from fraud.

• In a letter sent a day before Tuesday's procedural vote, the group argued that the bill would "muddy the waters" and could "embolden scammers" by stripping states of enforcement authority.
• James also warned the bill would let the SEC "preempt state registration authorities," granting the agency unilateral power that could upend the state securities regulatory regime.
• The pushback comes despite the latest draft giving state AGs a role in enforcing officials' conflict-of-interest rules.
  State attorneys general from California, Illinois, Arizona, Kansas, Ohio, Wisconsin and others signed Monday's letter.

South Korean investors push for fourth crypto tax delay as regulators stand firm

South Korean investors are pushing to delay the country's planned crypto tax for a fourth time, with a petition seeking a two-year postponement hitting the 50,000-signature threshold that triggers legislative review.

• The tax, set to be introduced on Jan. 1, 2027, would apply a 22% effective rate to annual crypto gains above 2.5 million won ($1,856), covering income from selling, transferring, and lending.
• Petitioners argue the tax is premature, warning it would push traders offshore and raise little revenue amid high crypto volatility.
• The incoming finance minister nominee said the plan is on schedule and detailed tax standards will come later this year.

Strategy holds steady, Strive hits 25,000 BTC, Bitmine nears 6 million ETH, DFDV adds to SOL stack

Strategy left its bitcoin untouched at 845,050 BTC for a second straight week, instead repurchasing $139.3 million of its STRC preferred stock from its cash reserve.

• Strive added 469 BTC for $36.6 million to reach an even 25,000 BTC treasury, funded entirely by its SATA preferred stock, which has topped $1 billion in notional value.
• Tom Lee's Bitmine also bought another 27,180 ETH to reach 5.96 million ETH, with adviser Tom DeMark predicting a "sharp upward move" for ether in the coming weeks.
• Meanwhile, DeFi Development Corp. grew its Solana treasury by 55,491 SOL to about 2.39 million SOL and set up a $300 million ATM for its CHAD preferred stock to fund more buying.

In the next 24 hours

• It's quiet on the economic calendar front.
• Starknet and Sei are among the crypto projects set for token unlocks.
• UN Blockchain Week and ETHTaipei continues. Conf3rence 2026 and Digital Asset Forum Canada get underway.

Reader poll

Markets now put the odds of a September Fed rate hike at 90%. If the Fed does hike on Wednesday, will bitcoin end the week higher anyway?

YES, IT SHRUGS IT OFF

NO, IT FALLS

One click records your pick. We'll share the result in a later edition.

*49% of respondents in last Monday's poll correctly predicted that Friday's CPI would not come in softer than expected.

Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem.