Senate Republicans have released an updated draft of the Clarity Act, a legislative framework designed to define the regulatory oversight of digital assets. The bill aims to categorize crypto assets as securities, commodities, or stablecoins, a move long requested by industry leaders to establish market structure.
The new version introduces specific requirements for decentralized finance protocols. DeFi applications will be classified as non-decentralized if they allow external control, lack transparent encoded rules, or permit censorship. Such protocols must register with the Commodity Futures Trading Commission.
The legislation also addresses the role of federal credit unions, permitting them to utilize distributed ledger systems and digital assets for authorized services. Additionally, the draft includes ethics provisions that prohibit government officials from promoting or profiting from cryptocurrency activities.
The Senate is scheduled to vote on the bill on September 15, following a delay from the original August timeline. While the bill passed the House of Representatives last July, it has faced opposition from the banking lobby and remains non-bipartisan, with some Democrats calling for further amendments.
