Republican Senate Leaks a Bit of the Clarity ACT Draft

Senate Republicans have released a revised version of the Clarity ACT draft. This is a major piece of crypto legislation. The new draft for Clarity ACT comes just days before a critical procedural vote. 

That vote is scheduled for September 15. It will require 60 votes to move forward. This means both parties must work together. The Clarity ACT crypto bill aims to reshape how federal regulators oversee digital assets. 

It also seeks to clarify the roles of the CFTC and SEC. The release gives the public its first look at what lawmakers have been negotiating.

Key Takeaways

• Senate Republicans released a revised Clarity ACT draft on Thursday.
• The new draft adds registration rules for certain DeFi protocols.
• A procedural vote is set for September 15 and needs 60 votes.

What Is the Clarity ACT Draft?

The Clarity ACT draft is a bill that would establish a federal framework for digital assets. If passed, it would legalize most cryptocurrency activity in the United States. It would also draw clear lines between the CFTC and the SEC. 

The bill has been under negotiation for months. Senator Cynthia Lummis of Wyoming is one of its chief negotiators. She unveiled the 630 page updated legislation on Thursday.

Lummis said the new version contains over 100 changes requested by Democrats. 

"We have incorporated more than 114 separate provisions at my Democrat colleagues' request, and as a result, this bill is a strong bipartisan product," Lummis said in a statement. 

She also argued that legislation offers a lasting solution. "Unlike rulemaking, legislation gives this industry a lasting solution that shields it from the whiplash of changes in the White House," she said.

Read also: Crypto Market CLARITY Act: Plenary Vote Agenda & Impact

What Changed in the Revised Draft?

The Clarity ACT draft revised version targets what some call decentralized in name only protocols. These are trading platforms that claim to be decentralized but are actually controlled by people or groups. 

The new language would require them to register with the CFTC. It also gives credit unions more clarity on digital asset rules.

Lummis said the changes respond to concerns about prediction markets. 

"This updated Clarity Act text reflects bipartisan hard work over August, specifying when decentralized in name only DeFi protocols must register with the CFTC and limiting the DeFi provisions to spot and cash transactions," she wrote on X.

The ethics provisions remain largely unchanged from the July draft. Those rules would prohibit public officials from issuing or sponsoring digital assets. 

Democrats want broader restrictions on President Donald Trump's crypto interests. According to Politico, none of them support the new bill.

The Road Ahead

The procedural vote is set for Tuesday, September 15. It is widely viewed as a do or die moment. White House crypto adviser Patrick Witt urged senators to vote yes. 

"All Senators, Republican and Democrat, should vote on Tuesday to get on the bill and allow the legislative process to continue," he wrote on X.

Treasury Secretary Scott Bessent also called for action. "I strongly urge everyone to remain at the negotiating table, agree to the motion to proceed, and continue the legislative process," Bessent wrote.

Some groups remain concerned. The American Bankers Association and 77 state banking associations sent a letter asking for greater restrictions on stablecoin rewards. But industry groups want the bill to move forward. 

Cody Carbone of the Digital Chamber said, "This draft reflects years of bipartisan negotiation. The Senate must act now or risk ceding U.S. leadership in digital asset and blockchain innovation to the rest of the world."

Read also: How the September 15 CLARITY Act Vote Could Affect Crypto

FAQ

What is the Clarity ACT draft?

It is a bill that would create a federal framework for cryptocurrency regulation in the United States.

What is new in the revised draft?

The new draft adds registration requirements for certain DeFi protocols and gives credit unions more clarity.

When is the Senate vote?

A procedural vote is scheduled for September 15. It requires 60 votes to advance.

Why do some Democrats oppose the bill?

They want stronger ethics rules to prevent public officials from profiting from crypto.

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