CLARITY Act Revised with Stricter DeFi Rules Ahead of Senate Vote

A revised version of the CLARITY Act has been released, incorporating more than 115 changes sought by Democratic senators ahead of a key Senate vote. The bill aims to establish a comprehensive federal framework for cryptocurrency markets and decentralized finance.

The updated legislation includes stricter regulations on DeFi platforms, including requirements for CFTC registration, customer identification, transaction monitoring, and anti-money laundering obligations. Platforms that use decentralized infrastructure while retaining operational authority may lose certain protections and face additional regulatory scrutiny.

The revised bill also allocates $150 million to the Commodity Futures Trading Commission (CFTC) to expand its supervisory and enforcement capabilities. Senator Cynthia Lummis has urged Democrats to support the updated legislation, arguing that it strengthens enforcement, consumer protections, and controls against financial crime.