U.S. Senate Republicans have released a revised draft of major cryptocurrency legislation, aiming to address concerns from Democrats regarding ethics provisions and banking industry worries about lending. The proposed Clarity Act, which seeks to establish a comprehensive regulatory framework for cryptocurrencies, had previously stalled amidst objections over insufficient ethics and illicit finance safeguards, alongside fears it could destabilise the banking system by fostering deposit competition.

Senators Cynthia Lummis, John Boozman, and Tim Scott confirmed that the new text incorporates 126 substantive changes requested by Democrats. A key focus of these revisions is strengthening restrictions on public officeholders profiting…