Before the procedural vote on September 15th, Republicans in the U.S. Senate released a new draft of the "Clarity Act," continuing to push for the establishment of a federal regulatory framework for digital assets. The new version focuses on "nominally decentralized" transaction protocols and further narrows the scope of application for "DeFi platforms."
The new draft tightens the DeFi certification requirements.
According to the latest text, if a certain transaction protocol can still be controlled by individuals or groups, or if its core functions can be substantially modified, it cannot be considered truly decentralized. Such protocols will be required to register with the United States Commodity Futures Trading Commission (CFTC).
The draft also requires CFTC to develop more specific complementary rules with the U.S. Treasury Department, covering the identification and regulatory methods for related transaction agreements. Senator Cynthia Lummis stated that the new version of the bill underwent over 100 amendments after consultations in August, including some requirements proposed by the Democratic Party.
DeFi Terms narrowed down to spot and cash transactions
According to Lummis, the new version of the text limits DeFi provisions to spot and cash transactions only. This adjustment is related to external controversies regarding the forecasting market and also responds to concerns raised by some stakeholders earlier on.
Compared to the July version, the ethical provisions in the bill remain largely unchanged, still prohibiting public officials, government employees, and their spouses from issuing or initiating digital asset projects.
September 15th voting is a critical milestone
This bill aims to establish a federal regulatory framework for the U.S. digital asset market and to delineate the responsibilities of CFTC and the U.S. Securities and Exchange Commission (SEC). If the bill is ultimately passed, the compliance path for most crypto activities in the United States will become clearer, and token financing may also regain a more defined legal space.
Currently, the Democratic Party has not shown any sign of support yet. Reports mention that Democrats wish to include broader restrictions that would affect President Trump's interests in the cryptocurrency industry.
Debates surrounding the provisions related to stablecoin returns in the bill continue. Crypto industry groups and community banks have recently increased their lobbying efforts. The industry organization Stand With Crypto stated that its supporters contacted members of Congress nearly 50,000 times in August; the banking sector, on the other hand, continues to push for changes to the reward provisions.
Lummis calls on Democrats to support the bill, stating that it has incorporated many of the proposals put forward by the opposition, including setting felony restrictions for fraudsters, allocating an additional $150 million in resources for CFTC, and strengthening law enforcement constraints on platforms such as Binance.
