Senate Republicans Update Clarity Act with Tougher DeFi Regulations
Senate Republicans have updated the Clarity Act to include new regulatory requirements for decentralized finance (DeFi) protocols.
The revised act now mandates that non-decentralized DeFi protocols register with the Commodity Futures Trading Commission (CFTC), aligning with existing provisions in the Banking Committee's bill.
The updated Clarity Act also restricts DeFi provisions to cash or spot digital commodity transactions, addressing concerns related to blockchain-based prediction markets.
The revised act clarifies the authority of credit unions to engage in cryptocurrency transactions, indicating a broader acceptance of digital assets by traditional financial institutions.