A fresh draft of the anticipated crypto Clarity Act has surfaced featuring several new modifications.
As initially broken by Eleanor Terrett representing Crypto in America alongside Punchbowl’s Brendan Pedersen, the revised legislation introduces provisions that mandate non-decentralized DeFi protocols to complete registration with the CFTC, alongside updates regarding how credit unions handle cryptocurrency operations, journalists note.
Key specifics dictate that a decentralized finance application fails to qualify as a true decentralized protocol if any entity retains the ability to govern or substantially alter its operations, if it fails to operate exclusively on predetermined, transparent coded parameters, or if someone can restrict or censor its utilization.
Additionally, the text establishes that a federal credit union may utilize a digital asset or distributed ledger network to execute, supply, or furnish any authorized activity, function, product, or service permitted under existing law.
JUST IN: 🇺🇸 An updated version of the Clarity Act has released ahead of next week’s floor vote 👀
"Latest changes include new DeFi requirements and credit union fix" — Punchbowl News
Pass it 🚀 pic.twitter.com/uYntehREqI
Legislators had originally anticipated holding a pivotal vote regarding the cryptocurrency market structure legislation back in August before embarking on their five-week recess. That vote was subsequently postponed, and the Senate is now scheduled to vote on September 15.
Journalists indicate the proposed bill lacks bipartisan support thus far. Senate Republicans initiated the circulation of the updated legislation on Thursday.
The Clarity Act lays out a regulatory structure to formally separate oversight duties between watchdogs, clearly defining which digital assets qualify as securities, commodities, or stablecoins. Leaders within the cryptocurrency sector have long demanded the establishment of such clear guidelines.
Although the House of Representatives approved the measure last July, progress stalled throughout the year, largely driven by conflicts between the banking lobby and crypto businesses concerning the distribution of stablecoin yields to users.
A separate draft addressing ethics provisions began circulating in July, proposing a ban on government officials from promoting or profiting from digital assets—a point Democrats have used to criticize the Trump family.
Despite these adjustments, a faction of Democratic lawmakers argued the legislation remains inadequate and called for further amendments.
Lawmakers favoring cryptocurrency have criticized Democratic politicians whom they accuse of intentionally stalling the bill.
President Donald Trump has strongly encouraged Congress to finalize the legislative package. During August, he stated that securing America’s status as the absolute leader in Bitcoin and digital assets requires passing this exceptionally potent legislation.
Originally published at https://bitcoinmagazine.com/news/updated-clarity-act-starts-circulating.
