Revised Clarity Act Tackles DeFi Regulation in US Senate
A revised version of the CLARITY Act has been released, aiming to clarify regulatory requirements for 'non-decentralized' DeFi operators in the United States.
The bill, posted on Senator Cynthia Lummis' website, defines such protocols as those whose functionality can be altered by a person or group. This includes protocols where controllers can restrict users and transactions are not governed solely by transparent code.
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) would develop rules addressing registration, conduct, disclosure, recordkeeping, and supervision. The Treasury would establish how existing Bank Secrecy Act obligations apply to affected controllers.
The revised text arrived ahead of a procedural Senate vote scheduled for September 15. The measure requires 60 votes to advance, meaning Republicans will need support from Democrats despite continuing disagreements over ethics, anti-money laundering protections, and stablecoin rewards.