Senate Republicans released a revised Clarity Act on Thursday targeting what they describe as "decentralized-in-name-only" crypto trading protocols.
The updated legislation, unveiled by Sen. Cynthia Lummis (R., Wyo.), would require non-decentralized protocols—those controlled by people or groups—to register with the Commodity Futures Trading Commission. The 630-page bill incorporates over 100 changes requested by Democrats and includes new language specifying when such protocols must comply with CFTC registration requirements.
The revised draft limits decentralized finance provisions to spot and cash transactions in response to concerns raised about prediction markets. The bill also directs the CFTC and Treasury to develop rules for trading protocols that people or groups can control or materially alter.
Ethics provisions remain largely unchanged from the July draft, continuing to prohibit public officials, employees, and their spouses from issuing or sponsoring digital assets.
A Senate procedural vote on the Clarity Act is scheduled for September 15. If passed, the legislation would establish a federal digital-asset market framework, clarify regulatory responsibilities between the CFTC and SEC, and potentially allow crypto startups to raise funds through token sales.
Lummis stated that the bill incorporates Democratic requests including felony bars on fraudsters, $150 million in funding for the CFTC, and measures targeting platforms. According to reporting, no Senate Democrats have expressed support for the new bill.
The stablecoin yield provisions in the Clarity Act have drawn competing lobbying efforts. Industry group Stand With Crypto reported supporters contacted members of Congress nearly 50,000 times in August, while community bankers have pressed for changes to reward provisions.
