The CLARITY Act nearly died Thursday morning.
Negotiations between Republicans and Democrats collapsed Wednesday night after talks stalled over changes to the BRCA, which protects noncustodial software developers from money transmitter prosecution.
Thursday morning, the five pro-crypto Democrats met in Warner's office to strategize. "Members were still hashing it out as late as 10:29 a.m." The hearing started at 10:30.
The deal came together in the ante room right after Warren's opening statement. Senators Tillis, Lummis, Alsobrooks, and Gallego struck a last-minute compromise while GOP aides handwrote draft amendments and rushed printed materials to members in real time. One staffer called it "chaotic and unprecedented."
The compromise removed BRCA-referencing language from Section 301, which DeFi advocates say could weaken developer protections. Other revisions authorized banks to engage in digital asset activities, banned insider trading on ancillary assets, and preserved state consumer protection laws.
The bill passed 15-9. Both Democratic yes votes made clear their support doesn't carry to the floor. Gallego: "My vote here does not guarantee a vote on the floor." The bill now gets merged with the Senate Agriculture Committee text before a full Senate vote.