US Senate Republicans update CLARITY Act ahead of procedural vote

On September 10, US Senate Republicans introduced an updated version of the CLARITY Act, which includes new requirements for DeFi protocols that fail to meet decentralization criteria. Senator Cynthia Lummis stated that the 630-page document, which incorporates over 114 provisions requested by Democrats, is a bipartisan compromise. A procedural vote is scheduled for September 15 to determine the bill's progress. The updated text defines non-decentralized protocols as those where a single entity or group can significantly alter service operations or consensus rules, restrict user access, or execute transactions outside of pre-established code-based rules. Operators of such services would be subject to registration, disclosure, and oversight requirements from the SEC and CFTC, alongside AML and counter-terrorism financing regulations from the Treasury Department.