Clarity Act Revised, But Ethics Dispute Remains
The Clarity Act has been revised by Senate Republicans, adding new provisions related to decentralized finance (DeFi) and credit unions. However, the ethics dispute that has stalled the bill's progress remains unresolved.
The updated text includes DeFi-related language in the Agriculture Committee section of the bill, which could have a significant impact on the sector. The central question is whether the legislation creates a workable distinction between protocol developers and financial intermediaries, noncustodial software and custodial services, decentralized governance and centralized operational control, and token issuers and users of open-source infrastructure.
The revised bill also gives credit unions new authority to deal in crypto assets. If enacted, this could allow them to expand services such as crypto custody, asset access, settlement support, or related offerings. However, the impact would depend on capital rules, consumer protection requirements, anti-money-laundering controls, and guidance from relevant federal and state regulators.
Despite these changes, the ethics section of the bill remains unchanged, which has become a major obstacle to advancing the legislation. Democrats have linked their support for the Clarity Act to stronger ethics provisions addressing President Trump's crypto business interests.