Lummis Pushes Clarity Act Amid Partisan Gridlock Over Crypto Regulations

A new draft of the Digital Asset Market Clarity Act has been released, updating provisions related to decentralized finance (DeFi) and credit unions.

The bill, which aims to reshape how federal regulators oversee cryptocurrency activities in the U.S., includes requirements for DeFi entities, such as registering with the Commodity Futures Trading Commission (CFTC) and complying with Bank Secrecy Act requirements.

Senator Cynthia Lummis, one of the bill's chief negotiators, argued that the legislation provides a lasting solution to crypto regulations, rather than leaving it up to sitting federal regulators like the CFTC and Securities and Exchange Commission (SEC).

Lummis stated that the latest draft includes provisions on DeFi projects, clarifying that they only target spot-market and cash transactions in digital commodities, not prediction markets. It also gives credit unions more clarity on their rules with digital assets.

However, it remains unclear whether the bill has enough votes to advance beyond next week's first procedural vote, which requires 60 Senators to support it.