Revised CLARITY Act targets ‘non-decentralized’ DeFi operators
The bill’s ethics section remained largely unchanged despite being one of the main points of contention ahead of a pivotal Senate vote.
The bill’s ethics section remained largely unchanged despite being one of the main points of contention ahead of a pivotal Senate vote.
A revised version of the CLARITY Act would direct United States regulators to determine whether people or groups controlling “non-decentralized finance trading protocols” must comply with securities, commodities and anti-money laundering (AML) requirements.
The revised text, posted on Senator Cynthia Lummis’ website, defines such a protocol as one whose functionality, operation, or rules can be materially altered by a person or coordinated group. The definition also covers protocols whose controllers can restrict users or whose transactions are not governed solely by transparent, pre-established code.
The revised text arrived ahead of a procedural Senate vote scheduled for Sept. 15. The measure requires 60 votes to advance, meaning Republicans will need support from Democrats despite continuing disagreements over ethics, anti-money laundering protections and stablecoin rewards.