Tighter Regulations Loom for DeFi Developers in Revised CLARITY Act
A new version of the Digital Asset Market Clarity Act (CLARITY Act) has been released, aiming to clarify regulatory requirements for decentralized finance (DeFi) developers. The bill narrows exemptions from the Bank Secrecy Act, forcing non-controlling DeFi developers to register as money services businesses and build anti-money laundering programs.
The previous iterations of the bill allowed developers to claim decentralized status if they didn't form corporations or operate through written contracts. However, this new version defines these informal arrangements as 'non-decentralized,' making them subject to registration and AML requirements.
The legislation also prohibits senior political officials from holding a significant financial interest of more than $15,000 in businesses that issue cryptocurrency.