Overview

  • Senate Republicans introduced a revised version of the Clarity Act on Thursday.
  • This draft mandates that non-decentralized trading platforms register with the CFTC.
  • A procedural vote in the Senate is set for September 15.

On Thursday, Senate Republicans rolled out an updated version of the Clarity Act, which focuses on crypto trading platforms that are not genuinely decentralized.

The proposed legislation stipulates that trading protocols controlled by individuals or organizations must register with the Commodity Futures Trading Commission (CFTC).

Myriad: Will Congress pass the Clarity Act? Click to make your prediction.

Senator Cynthia Lummis (R., Wyo.) presented the 630-page legislation ahead of the September 15 procedural vote, which aims to create a federal regulatory framework for digital assets and clarify the responsibilities of regulatory bodies.

“This revised text of the Clarity Act reflects bipartisan collaboration throughout August—detailing when decentralized-in-name-only DeFi protocols are required to register with the CFTC and confining DeFi provisions to spot and cash transactions, responding to concerns from Native American groups regarding prediction markets,” Lummis stated on X, noting that the updated draft includes over 100 amendments requested by Democrats.

“Let’s get this done!” she added.

The upcoming Senate procedural vote on the Clarity Act is seen as a critical moment for this long-awaited crypto legislation.

If enacted, the Clarity Act would legalize most cryptocurrency operations in the U.S., define the jurisdictional boundaries between the CFTC and SEC, and enable crypto startups to raise funds through token sales once more.

The revised bill instructs the CFTC and Treasury to formulate regulations for trading protocols that are under the control of individuals or groups. The ethical guidelines remain largely unchanged from the July draft, which barred public officials, their employees, and spouses from issuing or sponsoring digital assets.

Democrats have been pushing for stricter rules regarding President Donald Trump’s crypto ventures, and a report by Politico indicates that none have expressed support for the current bill.

In the debate over stablecoin yields included in the Clarity Act, crypto advocates and community bankers have intensified their lobbying efforts in senators’ home states. The industry group Stand With Crypto reported that supporters reached out to Congressional members nearly 50,000 times in August, while bankers have sought amendments to the rewards provisions.

Lummis has called on Democrats to back the bill, emphasizing that it incorporates their suggested changes. “Democrats requested a felony restriction on fraudsters, $150 million for the CFTC, a clampdown on platforms like Binance, and they received nearly all they asked for. Now they need to vote for the bill they helped shape. Anything less would mean abandoning their own efforts,” Lummis asserted on X.