Revised Clarity Act Proposes New Rules for Non-DeFi Protocols Ahead of Procedural Vote
A revised version of the CLARITY Act has been released by Senate Republicans ahead of its first procedural vote on September 15. The bill aims to establish federal regulation of the cryptocurrency industry and would require some centrally controlled crypto trading protocols to register with the Commodity Futures Trading Commission.
The revised legislation, led by Sen. Cynthia Lummis, introduces new rules for non-DeFi protocols and clarifies the definition of decentralized finance (DeFi). According to the bill, a protocol could be classified as 'non-decentralized finance' if an individual or group has authority to oversee its functionality or make material changes to its operations.
The CFTC would register entities covered by this classification, and Treasury and the CFTC would issue regulations to implement this provision. The revised bill also limits relevant DeFi provisions to 'spot and cash' transactions involving digital commodities.