630 Page CLARITY Act Draft Drops Days Before Senate Vote With Major DeFi and Prediction Market Changes

Key Takeaways

• The revised CLARITY Act adds rules for controlled DeFi protocols and narrows key DeFi provisions to spot and cash digital commodity transactions.

• The changes arrive before a crucial Sept. 15 Senate procedural vote, but the legislation still faces resistance from lawmakers and banks.

• Bitcoin, Ether and XRP remain under pressure ahead of the vote, although macro conditions rather than the CLARITY draft appear to be driving the immediate price weakness.

A revised 630-page version of the Digital Asset Market CLARITY Act has landed just days before a crucial Senate vote, introducing significant changes covering decentralized finance, prediction markets and digital-asset regulation.

Senate Banking Digital Assets Subcommittee Chair Cynthia Lummis released the updated text on Sept. 10 ahead of the Senate's Sept. 15 procedural vote.

Lummis said the latest version incorporates more than 114 provisions requested by Democratic lawmakers.

Regulatory Oversight for Non-Decentralized vs. Truly Decentralized Protocols

One of the biggest changes targets protocols that claim to be decentralized but remain under identifiable control. Such non-decentralized trading protocols could be required to register with the Commodity Futures Trading Commission and comply with Bank Secrecy Act requirements.