Clarity Act Tweaks DeFi Provisions Amid Uncertainty Over Bill's Future
A new version of the Digital Asset Market Clarity Act has been released, featuring tweaks to how decentralized finance (DeFi) and credit union provisions would be addressed under the key crypto legislation.
The latest text, circulated by Republican lawmakers on Thursday, includes certain new requirements for DeFi entities. Despite these changes, it is not expected to represent a final compromise that will win sufficient support from Democrats.
Republican Senator Cynthia Lummis, one of the bill's chief negotiators, argued for forging ahead on the bill rather than leaving crypto regulations up to sitting federal regulators. 'We have incorporated more than 114 separate provisions at my Democrat colleagues' request, and as a result, this bill is a strong bipartisan product,' said Lummis.
The latest draft of the bill includes provisions on when DeFi projects would need to register with the Commodity Futures Trading Commission (CFTC) and get Bank Secrecy Act requirements. It also makes clear that the DeFi language is only meant to target spot-market and cash transactions in digital commodities, not prediction markets.