Updated Crypto Clarity Act Starts Circulating Days Before Key Vote

According to Bitcoin Magazine, an updated draft of the crypto Clarity Act has started circulating days before a key Senate vote. First reported by Eleanor Terrett from Crypto in America and Punchbowl's Brendan Pedersen, the newly amended legislation features specific requirements for decentralized finance (DeFi) protocols and adjustments regarding how federal credit unions deal in crypto.

Under the proposed updates, non-decentralized DeFi protocols are required to register with the CFTC. A decentralized finance application fails the decentralization test if an individual can control or materially alter its functionality, if it does not run solely on pre-established transparent encoded rules, or if someone can restrict or censor its use. Additionally, the draft permits federal credit unions to use digital assets or distributed ledger systems for authorized activities and services.

The Senate is scheduled to vote on the market structure bill on September 15, following a delay from August. The legislation is not yet bipartisan, and a group of Democrats has stated the bill falls short. Conversely, President Donald Trump has urged lawmakers to pass the legislation, while crypto industry executives have long called for such oversight rules.