Cynthia Lummis, chair of the U.S. Senate Subcommittee on Digital Assets, presented an updated version of the CLARITY Act. The Senate is set to vote on the bill on September 15. The changes followed lawmakers’ work in August and include proposals agreed to with Democrats.
The updated text sets out the conditions under which DeFi protocols that are not fully decentralized would have to register with the U.S. Commodity Futures Trading Commission (CFTC) and comply with the requirements of the Bank Secrecy Act.
At the same time, the DeFi provisions would apply only to transactions involving digital commodities in spot and cash markets. This clarification is intended to keep prediction markets, which had previously raised concerns among tribal representatives, outside the scope of the provisions.
The bill also clarifies the powers of credit unions in digital asset transactions.
According to Lummis, the current version of the bill incorporates more than 114 separate provisions proposed by Democrats.
Earlier:
- CFTC Chair Says Crypto Market Will Be Regulated Even If CLARITY Act Fails
- SEC to Launch First Formal Crypto Rulemaking Process
- US Senate Delays CLARITY Act Vote Ahead Of Summer Recess
- Bernstein: Clarity Act Failure Won’t Stop Crypto Market Reform
- Trump Removes Final Obstacle to Clarity Act’s Senate Passage — The Block