CLARITY Act Gets Major Update Ahead of Crucial Senate Vote
Senator Cynthia Lummis has unveiled an updated version of the CLARITY Act, a bill aimed at regulating cryptocurrencies. The new 630-page text includes over 100 changes requested by Democrats and is set to be voted on September 15.
The revised bill addresses concerns raised by Democrats and other groups, particularly in regards to decentralized finance (DeFi) regulations. The updated language creates clearer rules for protocols that call themselves decentralized but remain controlled by a company or individual. These 'decentralized-in-name-only' platforms could be required to register with the Commodity Futures Trading Commission (CFTC).
The bill also limits its DeFi rules to spot or cash digital commodity transactions, addressing concerns from Native American tribes over blockchain-based prediction markets.
Credit unions have been given clearer authority to provide digital asset services alongside larger banks. Under the new language, credit unions could hold, store, and offer crypto services to their members.