🚨Revenge spend: Following the demise of the Clarity Act, Fairshake is gearing up to make its biggest spend of the year: $30 million against Sherrod Brown as he takes another shot at returning to the Senate, where, if successful, he could reclaim his seniority and return as chair or ranking member of the Senate Banking Committee. First reported by the NYT and confirmed to me by a Fairshake spokesperson.

🚨NEW: A group of seven Senate Democrats, including @gillibrandny, @MarkWarner, @SenRubenGallego and @Sen_Alsobrooks, say they are “committed to working in a bipartisan fashion” to pass the Clarity Act. The statement comes amid early efforts to restart bipartisan talks and gauge the appetite on both sides for returning to the table and getting the Clarity Act passed before the end of the year, according to three sources familiar with the discussions.

🚨NEW: Several Democrats who have spent months negotiating the Clarity Act, including Gillibrand, Warner, Booker, Warnock, Gallego, Alsobrooks and Cortez Masto, have all voted NO. One industry leader just texted me: “It died.”

🚨NEW: Eight banking trade groups say the deposit flight “circuit breaker” added to the new Clarity Act text is “not a safeguard at all,” arguing it would only kick in after substantial deposit flight had already occurred. In a letter to Senate leaders, the groups call for further tightening of the stablecoin rewards language to close what they describe as loopholes that could still allow interest-like payments on stablecoin balances. Their core ask remains essentially unchanged.

🚨NEWS: Senate Republicans have released new Clarity Act text featuring a revised ethics proposal agreed to by President Trump. The text also contains changes to the sections on the Blockchain Regulatory Certainty Act (BRCA), stablecoin yield, and the so-called “Ag title.” Republicans are calling it their “last, best and final” offer to Democrats ahead of Tuesday’s cloture vote. Some high-level details.👇🏼 On BRCA: The provision has been narrowed to the Bank Secrecy Act and civil enforcement. Specific language extending its protections to criminal cases, including prosecutions under Section 1960, has been removed. On ethics: Trump has agreed to what a GOP aide describes as “80%” of the Tillis-Gallego ethics proposal including to either divest “substantial” crypto-related financial interests or place them in a blind trust. It would also allow a role for state attorneys general to enforce ethics provisions, something which the White House had previously balked at. On yield: Added “circuit breaker” language (floated by Tillis in July) that would effectively act as a backstop by allowing federal regulators to intervene if there was evidence of widespread deposit flight from community banks to stablecoins. The federal regulator that will be the arbiter of this: Treasury Secretary Scott Bessent. On Ag: The updated text adds tighter guardrails around vertical integration, including affiliate trading and conflicts of interest involving digital commodity exchanges, brokers and dealers. It also clarifies that state consumer protection laws still apply and that developer protections do not create exemptions from derivatives laws or impact prediction markets. More to come in the @CryptoAmerica_ newsletter tomorrow AM.

NEWS: Ways & Means Republicans are strongly considering dropping provisions on taxing mining/staking rewards from their crypto tax package, per multiple sources familiar w/ the plans W&M expected to mark up the bill Wednesday. No final decisions have been made, per sources, but leaving out mining/staking rewards treatment would eliminate biggest sticking point w/ Dems @PunchbowlNews Vault subscribers got the news first via text. MORE SOON in Sunday Vault w/ @ccleffert

🏛️ What’s keeping institutional money on the sidelines? A lack of certainty. @SolanaInstitute President @KristinSmith says passing the Clarity Act would give firms the confidence to put real resources behind crypto and blockchain infrastructure. “People want to see that, okay, Congress passed a bill. This isn’t going away.”

Looking forward to sitting down with White House Crypto Council Executive Director @patrickjwitt tomorrow at the @SolanaInstitute Summit, ahead of Tuesday’s Clarity Act vote. I think we’ll have plenty to talk about.

The banking industry says stablecoin rewards could drain deposits and hurt the mom-and-pop businesses that rely on community banks for loans. But @a16zcrypto Head of Policy and GC @milesjennings says that argument is a smokescreen for banks that don’t want the financial system to change.

🚨NEW: On the anniversary of 9/11 at the @Yankees/@Mets game, a man wearing a Palestinian flag ran out onto the field and was immediately tackled by NYPD officers and dragged off. Fans could be seen throwing drinks and food at the man as he exited. Unreal.

25 years ago, my dad was delivering the business headlines on the @BBC when the first plane hit the North Tower. He was scheduled to do a solo segment before handing the show back to the main anchors. But the anchors had gone on a break, and so he found himself covering the first few minutes of what would become one of the most devastating breaking news stories in history. I’ve always admired the calm and professionalism with which he handled those first uncertain moments, and his ability to pull random facts about New York City from memory as the story unfolded. A true pro. Forever my role model.

🚨NEW: Do the banks actually want the Clarity Act to pass? @a16zcrypto’s Head of Policy and General Counsel @milesjennings says he’s seen “no evidence” of the deposit flight banks have warned could result from stablecoin rewards and argues some banks just “don’t want this bill to pass at all.” Jennings joined us at @SALTConference Wyoming to break down the path to 60 votes, the banking battle, why SEC action alone can’t give founders long-term certainty and whether the scars of the Gensler era are still driving crypto entrepreneurs away. Full conversation and links.👇🏼

"The next wave of interest in crypto is coming from Wall Street. It's from institutions; it's from asset allocators." - @KristinSmith on @CryptoAmerica_ Solana Summit: Washington x Wall Street is almost here. Reserve your spot:

🚨NEW: @KristinSmith is still optimistic about the Clarity Act’s chances, but less so than she was this spring. “The crypto industry likes to have this idea that we can control the process. We can’t control the process,” she says. The @SolanaInstitute president explains what needs to happen before the Senate vote next week and why regulators must now commence “Operation Plan B.” Our full conversation from @SALTConference Wyoming.👇🏼

KBW2026 @CryptoAmerica_: @EleanorTerrett Eleanor Terrett (Founder & Co-Host, Crypto in America) is confirmed for KBW2026 this fall. An award-winning journalist and trusted voice on crypto policy and regulation, Terrett spent nine years at FOX Business before launching an independent platform focused on the forces shaping digital assets in the United States. Get your tickets and use code KBW2026SNS at checkout for 10% off. ⬇️

The National Sheriffs’ Association was the last of the major police organizations opposing the Clarity Act to change its position, moving from opposition to neutral. But that shift is notable. Compare the language in this letter with the one the group sent July 31, when it described the bill as “harmful,” warned of “significant law enforcement and public safety risks” and characterized the BRCA language as “terrible policy.” While not an endorsement, the shift likely reflects significant behind-the-scenes work between White House officials and the group this summer to move it from its earlier highly critical stance to neutral. Not expected to change their positions, I’m told, are the prosecutors: the National District Attorneys Association and the National Association of Assistant U.S. Attorneys. Both groups have conditioned their support on significantly narrowing the BRCA’s protections for noncustodial software developers, including making it easier to prosecute them as unlicensed money transmitters for knowingly moving illicit funds. The White House, Treasury, Members of Congress and the crypto industry have made clear they are unwilling to make those changes. Democratic Senator @SenCortezMasto aligned herself with the prosecutors’ groups in a July letter backing the proposed changes and has not publicly shifted her position since. But the NSA’s move to neutral is generally being viewed as removing another obstacle on the path to the September 15 vote.

🚨NEW: Does the Clarity Act actually have a shot at passing the Senate this month? @krakenfx’s global head of policy and market structure, @JonathanJachym, says the remaining policy issues amount to “fine-tuning” and there is a real path forward. But if Congress blows this window, the consequences for crypto in America could last for years. Full episode and links below. 👇🏼