Revised Clarity Act Adds Federal Oversight for Crypto Trading Protocols Ahead of Senate Vote
A revised version of the Clarity Act has been released by Senate Republicans, just five days before a scheduled procedural vote on September 15. The new draft adds federal oversight for certain crypto trading protocols and creates CFTC registration rules for those that fail its decentralization standard.
The bill, which aims to provide a durable statutory structure for the digital asset industry, has incorporated more than 114 provisions requested by Democratic senators during negotiations. However, ethics language remains a barrier to Democratic votes, with critics arguing that it restricts public officials and government employees from issuing or sponsoring digital assets but does not go far enough.
The Clarity Act revision targets controlled trading protocols, establishing a category called a 'non-decentralized finance trading protocol.' This would require registration with the Commodity Futures Trading Commission. The bill also directs the CFTC and Treasury Department to develop implementing rules for how this standard would work across different technical and governance arrangements.
Lummis said that the bill would give the digital asset industry a durable statutory structure that could not be changed as easily as agency rules following a new presidential administration.