Congress Advances on Clarity Act Ethics Provisions Amid DeFi Review

Bipartisan talks in the US Congress are making progress on the ethics provisions of the Clarity Act, which aims to establish federal rules for crypto classification, custody, and consumer protections. The bill is seen as critical for gaining regulatory clarity that would help adoption and market confidence.

The talks have focused on ensuring that the ethics provisions prevent conflicts of interest among regulators and lawmakers involved in crypto policy, with a draft expected to be released in the coming days after productive discussions with the White House last week. The bill's passage is widely viewed as one of the most consequential pieces of crypto legislation in the current Congress.

The DeFi provisions are also under review, which could determine how decentralized protocols are treated under securities laws and potentially impact their ability to operate in the US and access American investors.