Senate Republicans Revise Clarity Act Ahead of Crucial Vote

Senate Republicans have released a revised version of the Clarity Act, a bill aimed at regulating the crypto market. The updated legislation adds new rules for non-decentralized finance protocols and targets entities that can materially control decentralized trading protocols.

The revised bill would require such entities to register with the Commodity Futures Trading Commission (CFTC), while the CFTC and Treasury would develop rules governing these activities. This move is part of an effort to address concerns from tribal governments over prediction markets, which are now limited to spot and cash digital commodity transactions.

Despite incorporating more than 114 provisions requested by Democrats, the bill still faces significant hurdles. Sen. Cynthia Lummis, a supporter of the legislation, argues that clear federal rules could strengthen America's position in global crypto markets.