CLARITY Act Delay Creates Regulatory Uncertainty for DeFi

The CLARITY Act, a proposed law aimed at regulating the cryptocurrency market, has been delayed until September. The delay extends regulatory uncertainty for decentralized finance (DeFi), according to an analysis by 1inch.

Maylea Ma, Senior Legal Counsel of 1inch, analyzed the draft of the market structure legislation and highlighted its potential impact on developers, non-custodial protocols, and self-custody services. She noted that while the law is imperfect, it may provide greater clarity than the existing regulatory framework.

The CLARITY Act includes regulations concerning the Blockchain Regulatory Certainty Act (BRCA), software development, and self-custody. However, Ma warned that prior talks on amendments to the Senate reduced some of these protections.