Ohio Republicans clash over Section 305 before Tuesday’s 2:15 p.m. CLARITY Act vote

  • Davidson urged the Senate to remove Section 305 from the CLARITY Act.
  • 180 days is the maximum hold allowed after a law-enforcement extension.
  • Moreno confirmed Tuesday’s first procedural vote for 2:15 p.m. ET.

Two Ohio Republicans have publicly split over Section 305 of the Digital Asset Market Clarity Act, known as the CLARITY Act, less than two days before the Senate’s first procedural vote on the measure. Representative Warren Davidson said the provision should be removed, arguing that it could allow a suspicious transaction to be frozen for up to 30 days, with a law-enforcement extension taking the total to 180 days, without a prior court order or timely opportunity for customers to challenge the action. Senator Bernie Moreno confirmed that the Senate will vote Tuesday at 2:15 p.m. ET on whether to end debate and consider the bill, rather than on final passage. Section 305 appears in the Senate substitute released by Senator Cynthia Lummis on September 10. It permits covered persons, including certain stablecoin issuers and digital asset service providers, to delay transactions, conversions, or withdrawals, while providing civil-liability protection for good-faith compliance. The provision was presented by Lummis as protection for firms that freeze tokens after law-enforcement warnings, following a lawsuit alleging that Tether froze approximately 42.4 million USDT after an informal request from Homeland Security Investigations. Cloture on the motion to proceed requires 60 votes, while Republicans hold 53 Senate seats. The House passed its version 294 to 134 in July 2025, and the Senate Banking Committee advanced a companion measure 15 to 9 on May 14, 2026. The Senate substitute is roughly 630 pages and includes more than 114 provisions requested by Democratic colleagues, including Commodity Futures Trading Commission (CFTC) registration and Bank Secrecy Act compliance for non-decentralized protocols, narrower decentralized finance provisions, and expanded credit-union authority. Ethics language remains unresolved, alongside the stablecoin-yield compromise. If cloture succeeds, Section 305 can be amended on the Senate floor; if it fails, the motion to proceed stalls. Any Senate legislation would still require House agreement, with later September voting weeks already canceled.

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