Updated Clarity Act Circulates Ahead of Key Senate Vote on Crypto Oversight

An updated version of the Crypto Clarity Act has been released just days before its key vote in the Senate.

The bill, which aims to formally divide oversight between regulators and distinguish digital assets as securities, commodities, or stablecoins, has undergone changes since its previous draft.

The new amendments include requirements for non-decentralized DeFi protocols to register with the CFTC and changes in how credit unions handle cryptocurrency.

A decentralized finance app is considered non-decentralized if someone can control or alter its functionality, if it doesn't run solely on transparent encoded rules, or if someone can restrict or censor its use.

The bill also allows federal credit unions to use digital assets or distributed ledger systems for their authorized activities, functions, products, and services.