Revised Clarity Act Released Ahead of Crucial Senate Vote

A revised version of the Clarity Act has been released, reflecting bipartisan efforts over August to clarify regulations on decentralized finance (DeFi) protocols and other aspects of the digital asset market.

The updated bill, which is set to go through a crucial cloture vote in the Senate on September 15, aims to provide clarity on the jurisdiction of regulatory bodies such as the SEC and CFTC over digital assets.

Cynthia Lummis, chair of the Senate Banking Committee's Digital Assets Subcommittee, explained that the revised bill includes over 100 provisions, many of which were requested by Democrats, including requirements for DeFi protocols to register with the CFTC if they do not meet certain criteria. The bill also clarifies that stablecoins with interest or fees will be subject to banking regulations.

The cloture vote is expected to pass with at least 60 votes, but it remains uncertain whether the revised bill will ultimately become law. Lummis noted that the bill has undergone significant changes since its initial passage in the House of Representatives and may need further revisions before being sent to the president's desk.