Clarity Act Update: Senate Republicans Unveil Revised Crypto Regulation Bill Ahead of Crucial Vote
Senate Republicans have released an updated version of the Clarity Act ahead of its crucial vote on September 15. The bill aims to establish a federal digital-asset market framework and clarify regulatory responsibilities, which has undergone significant revisions since its initial release.
The new draft targets 'decentralized-in-name-only' crypto trading protocols, requiring non-decentralized protocols, those controlled by individuals or groups, to register with the Commodity Futures Trading Commission (CFTC). Senator Cynthia Lummis unveiled the 630-page updated legislation, highlighting over 100 changes requested by Democrats.
The revised Clarity Act includes provisions that limit DeFi protocols to spot and cash transactions, addressing concerns from Native American leaders about prediction markets. The bill also directs the CFTC and Treasury to develop rules for trading protocols that people or groups can control or materially alter.
Despite these changes, Democrats have expressed reservations, with none reportedly in support of the new bill. Industry groups and community bankers have been lobbying senators to make further amendments, particularly regarding stablecoin yield provisions.