Senate Democrats sent their Republican counterparts a counterproposal on the Digital Asset Market Clarity Act late Monday, on the eve of the bill’s first procedural vote, Politico reported, citing three sources familiar with the matter.

The move followed a reported Monday evening meeting of Democratic negotiators in Minority Leader Chuck Schumer‘s office and came a day after Republicans circulated a new draft. Sens. Cynthia Lummis, John Boozman and Tim Scott released what they termed the final version of the bill, saying it incorporated 126 substantive changes Democrats had asked for.

This story is an excerpt from the Unchained Daily newsletter.

Before reports of the Democrat counteroffer, several Democratic senators had railed against the ethics provision in the most recent draft.

The ethics section, which President Donald Trump agreed to, would bar covered officials from issuing, sponsoring or holding a significant financial interest in a digital asset, require divestiture or a qualified blind trust, add civil penalties, let state attorneys general sue to enforce it, and remove the sunset on enforcement that appeared in the previous draft.

Sen. Elizabeth Warren on Monday released analysis from the Minority Staff of the Senate Banking Committee that said the language shielded Trump. The Office of Government Ethics could issue a notice permitting senior officials to keep their crypto business ties, and the state enforcement route would not allow attorneys general to bring an action directly against the president, the analysis said.

Sen. Raphael Warnock reportedly told Bloomberg’s Terrence Banks that Democrats should not advance a bill that leaves room for corruption they are watching in real time. Sen. Adam Schiff reportedly told Semafor’s Eleanor Mueller the provisions likely would not reach the first family as written.

Republicans spent Monday signaling the negotiation is over. Sen. Cynthia Lummis on X said some Democrats will not get to yes no matter what is in the text. “There is nothing left to give,” she said.

Outside the Senate, opposition hardened instead: 18 state attorneys general, led by New York’s Letitia James and including Republicans Kris Kobach and Andy Wilson, urged a no vote over preemption language they say would block state fraud cases, citing $11.4 billion in FBI-reported crypto losses last year.

Meanwhile, eight banking groups wrote Majority Leader John Thune and Democratic Leader Chuck Schumer seeking tighter stablecoin rewards limits, calling the bill’s deposit-flight circuit breaker useless if it only triggers after the damage is done. Treasury Secretary Scott Bessent defended that provision, saying he would not hesitate to use the authority.

Tuesday’s cloture vote requires 60 senators. Republican senators told Semafor last week the bill was likely to fail over the ethics language. If it clears, several more votes follow before final passage, and the House may not be able to take it until after returning from recess following the November election.

Related Listen: Kristin Smith on Why the Clarity Act Comes Down to a Memecoin