Revised Clarity Act Adds DeFi Rules Amid Ongoing Hurdles for US Crypto Regulation

Senate Republicans have released an updated version of the Clarity Act, a bill aimed at creating a federal framework for the cryptocurrency industry in the U.S. The revised text includes over 114 provisions requested by Democratic colleagues and adds rules for non-decentralized finance protocols.

The updated bill requires non-decentralized finance trading protocols to register with the Commodity Futures Trading Commission, with DeFi rules applying only to spot and cash digital commodity transactions.

Despite this progress, key hurdles remain for passage, including disputes over stablecoin rewards, illicit finance, and Trump's crypto holdings and related ethics provisions.