Revised CLARITY Act Aims to Clarify US Crypto Oversight Ahead of Pivotal Vote
Senate Republicans have revised the CLARITY Act ahead of a pivotal procedural vote on September 15. The 630-page legislation adds new rules for non-decentralized finance protocols and incorporates over 114 provisions requested by Democrats.
The revised bill targets decentralized finance oversight, creating a category for non-decentralized trading protocols where an individual or group can materially control or change functionality, operations, or consensus rules. These entities would face registration requirements with the Commodity Futures Trading Commission and additional regulatory obligations under the proposed framework.
Despite progress on major issues, unresolved ethics disputes continue to threaten the bill's path forward. President Donald Trump has many interests in cryptocurrencies, including businesses related to World Liberty Financial and the TRUMP memecoin. Democrats claim that existing limitations cannot tackle possible conflicts between the president and his family.