Republicans Revise CLARITY Act Amid Ongoing Ethics Dispute

The CLARITY Act has undergone revisions in its latest version, which was introduced by Republicans. The bill's impact on the broader cryptocurrency market, including BTC, XRP, and ETH, remains significant.

According to journalist Brendan Pedersen, the revised draft distinguishes between genuinely decentralized protocols and 'non-decentralized finance trading protocols.' Participating in a decentralized governance mechanism or incident-response security council does not automatically amount to control. The bill retains protections for software developers.

The updated DeFi language focuses on digital-commodity cash and spot markets, with notable revisions strengthening credit unions' language. Regulators will retain their supervisory and enforcement powers over credit unions, including the National Credit Union Administration.

The revised GENIUS Act makes technical changes to put credit-union accounts on equal footing with bank deposits when dealing with tokenized financial products. However, the unresolved ethics dispute remains a concern for Democrats, who may decide whether the legislation can advance.