US Senate Bill Tackles DeFi Regulation as Clarity Act Vote Looms

The US Senate is gearing up for a key vote on the Clarity Act, which aims to provide clarity and guidance on cryptocurrency regulation in the country.

A revised draft of the bill was circulated by Senate Republicans on Thursday, with new requirements for some decentralized finance (DeFi) projects. The bill now requires select DeFi projects to register with the Commodity Futures Trading Commission (CFTC), narrows coverage to spot and cash transactions, and clarifies digital asset rules for credit unions.

The American Bankers Association and 77 state banking groups have expressed concerns about stablecoin rewards, urging lawmakers to impose tighter restrictions. Meanwhile, Democrats continue to press for a bipartisan ethics provision aimed at preventing government officials from profiting from crypto businesses.

A cloture vote on the bill is set for September 15, which requires 60 votes to advance. Despite bipartisan support remaining uncertain due to unresolved stablecoin concerns and ethics demands, administration officials and crypto advocates are urging senators to keep the process moving.