CLARITY Act Revised with 126 Democrat-Requested Changes

Senate Republicans have released a revised version of the CLARITY Act, which includes 126 policy changes requested by Senate Democrats. The bill aims to clarify and regulate the digital assets industry, covering token classifications, issuer disclosures, exchange rules, DeFi compliance, bank protections, developer safeguards, consumer enforcement, and federal ethics restrictions.

The changes reflect over 100 requests from Democrats, according to Senator Cynthia Lummis of Wyoming. They include modifying how federal agencies classify and oversee digital assets, expanding SEC and CFTC oversight, and tightening fundraising and illicit finance rules.

One key change is the replacement of a technology-neutral approach with a Network Token framework focused on tokens tied to distributed ledger systems. Issuers would need to certify that their assets qualify as ancillary assets rather than securities before seeking Regulation Crypto treatment or public resale.

The bill also addresses concerns over stablecoins, software liability, and ethics. Treasury would receive authority to prevent deposit flight tied to payment stablecoins, and developers would be protected by a civil safe harbor without displacing derivatives regulation or existing CFTC authority.