CLARITY Act Bill Revised Ahead of Senate Vote

Senator Cynthia Lummis has presented a revised version of the CLARITY Act bill ahead of its September 15 procedural vote in the Senate. The revisions address concerns over controlled DeFi platforms, prediction markets, and state authority.

The revised text retains the market structure established in the July draft but makes significant changes to Section 20209, which covers software developers and decentralized finance. An explicit DeFi control test has been added, requiring protocols with identifiable controllers to register with the CFTC.

Lummis described the new text as a compromise reflecting negotiations conducted during August, incorporating over 100 changes requested by Democrats. The revised bill limits DeFi protections to spot markets and cash transactions, addressing concerns about prediction markets raised by Native American groups.