Clarity Act Revised: Senate Republicans Target Non-Decentralized Crypto Trading Protocols

Senate Republicans have released an updated version of the Clarity Act, a bill aimed at establishing a federal digital-asset market framework and clarifying regulatory responsibilities. The new draft would require non-decentralized trading protocols to register with the Commodity Futures Trading Commission (CFTC). This change targets 'decentralized-in-name-only' crypto trading protocols, which are controlled by people or groups.

The revised bill includes over 100 changes requested by Democrats and addresses concerns from Native American communities about prediction markets. A Senate procedural vote on the Clarity Act is scheduled for September 15, a deadline some view as a make-or-break moment for the legislation.

While the new draft directs the CFTC and Treasury to develop rules for trading protocols that people or groups can control, it largely maintains the ethics provisions from previous drafts. These provisions prohibit public officials, employees, and their spouses from issuing or sponsoring digital assets.