US Senate Tackles DeFi Regulations in Revised CLARITY Act
A revised version of the CLARITY Act aims to clarify regulations for decentralized finance (DeFi) operators in the United States.
The bill would direct regulators to determine whether those controlling 'non-decentralized' DeFi protocols must comply with securities, commodities and anti-money laundering requirements.
A protocol is considered 'non-decentralized' if its functionality or operation can be altered by a person or group, or if controllers can restrict users or transactions are not governed solely by transparent code.
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) would develop activity-based rules addressing registration, conduct, disclosure, recordkeeping, and supervision, while the Treasury would establish how existing Bank Secrecy Act obligations apply to affected controllers.