US Senate Releases Revised CLARITY Act Expanding CFTC Oversight

The US Senate has released a revised version of the CLARITY Act, a 630-page bill that aims to clarify regulatory boundaries between the SEC and CFTC for the US cryptocurrency market.

Cynthia Lummis, chair of the Senate Banking Committee's Digital Assets Subcommittee, stated that the new version incorporates over 100 amendments proposed by Democratic lawmakers.

The revised text expands CFTC oversight to non-decentralized DeFi protocols, which will be required to register with the CFTC and comply with obligations such as client asset segregation, conflict of interest management, trade recordkeeping, and bankruptcy protection.

The bill also clarifies regulation of prediction markets and credit cooperatives, but stablecoin yields and official ethics clauses remain largely unchanged.