Republicans Update CLARITY Act Ahead of Senate Vote

U.S. Senate Republicans have updated the CLARITY Act ahead of its procedural vote on September 15.

The updated bill clarifies which DeFi protocols cannot be considered decentralized and outlines requirements for their operators to meet, including registration with regulatory bodies such as the CFTC and SEC.

Senator Cynthia Lummis announced the update on Twitter, stating that over 114 provisions were included at the request of Democrats, resulting in a bipartisan compromise.

The new version limits DeFi provisions to spot transactions involving digital commodities, addressing concerns from Native American authorities about prediction markets.