Clarity Act Update: 100+ Democrat-Requested Changes Weigh In on Crypto Regulations
The updated Clarity Act text has undergone significant changes, according to Senator Cynthia Lummis. The bill now carries over 100 Democrat-requested changes, which were incorporated into its 630-page draft.
Lummis urged Democrats to help pass the bill, citing the bipartisan effort that went into updating the legislation. The latest version of the Clarity Act reflects modifications made in response to concerns from Native American communities about prediction markets and DeFi protocols.
The most significant changes can be found in Section 20209, which deals with DeFi safe harbors. This section has expanded significantly, from 285 words to approximately 2,200, providing a full carve-out for validators, node operators, and those publishing wallet software from the Commodity Exchange Act.
However, not all sections have seen significant changes. The preemption clause has been modified to limit state securities, commodities, and digital asset law to those activities. Credit unions have also received clearer definitions, keyed to the GENIUS Act, but their authority remains unchanged in terms of brokerage or dealing.