Updated Crypto Clarity Act Starts Circulating Days Before Key Vote
Senate Republicans have released an updated draft of the Crypto Clarity Act, which introduces new requirements for decentralized finance (DeFi) protocols and clarifies credit union involvement in digital assets. The bill aims to establish a regulatory framework for digital assets ahead of a scheduled Senate vote.
Why it matters
Clearer regulation of digital assets is a major priority for the crypto industry, and this bill represents a significant step toward defining oversight between securities and commodities.
A new draft of the long-awaited bill has been circulated by Senate Republicans.
A new draft of the long-awaited crypto Clarity Act has dropped with amendments.
As first reported by Eleanor Terrett from Crypto in America and Punchbowl’s Brendan Pedersen , the updated bill contains changes including requiring non-decentralized DeFi protocols to register with the CFTC, and changes around how credit unions deal in crypto, according to reporters.
The specifics include that a decentralized finance app fails the test of being such a protocol test if someone can control or materially alter its functionality, if it doesn’t run solely on pre-established transparent encoded rules, or if someone can restrict or censor its use.
It also adds that a federal credit union may use a digital asset or distributed ledger system to perform, provide, or deliver any activity, function, product, or service it is otherwise authorized by law to perform.
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