Senate's Revised CLARITY Act Targets 'Non-Decentralized' DeFi Operators

A revised version of the U.S. Senate's CLARITY Act is moving forward to regulate 'non-decentralized' DeFi operators.

The updated bill defines 'non-decentralized finance trading protocols' based on whether a person or group can change protocol functionality, rules, or user access.

Regulators would issue activity-based requirements: the SEC and CFTC would cover registration, conduct, disclosure, recordkeeping, and supervision, while the Treasury would address how existing Bank Secrecy Act obligations apply.

The bill explicitly states that software and distributed ledger systems would not need to register in their own capacity.