US Senate Set to Vote on Revised CLARITY Act Regulatory Framework

The US Senate is set to vote on a revised version of the CLARITY Act, which would establish regulatory guidelines for decentralized finance (DeFi) protocols.

The bill defines 'non-decentralized finance trading protocols' as those whose functionality or rules can be materially altered by a person or group.

The SEC and CFTC would develop activity-based rules covering registration, conduct, disclosure, recordkeeping, and supervision for affected controllers.

The Treasury Department would address how existing Bank Secrecy Act requirements apply to these protocols.