Fresh CLARITY Act Text Revises DeFi Provisions, Leaving Bill’s Next Steps Unclear

The CLARITY Act is approaching a critical Senate vote, with lawmakers needing 60 votes to advance the legislation. Republicans introduced a revised version of the bill on Thursday ahead of the Senate’s return from recess.

The latest Digital Asset Market CLARITY Act draft modifies several provisions related to decentralized finance (DeFi) and traditional financial institutions involved in digital assets. However, the changes have not yet produced a final bipartisan agreement, leaving the bill’s prospects uncertain.

The updated legislation introduces additional requirements for certain DeFi activities while keeping much of the framework from previous versions. It also aims to establish clearer regulatory boundaries for digital assets and define the responsibilities of federal agencies.

Senator Cynthia Lummis said the latest draft includes more than 114 provisions requested by Democrats. She argued that passing legislation would provide the crypto industry with greater long-term certainty than depending on regulatory actions by the CFTC or SEC.

The bill also outlines circumstances in which DeFi activities could require registration with the CFTC and compliance with the Bank Secrecy Act. The relevant provisions focus on spot transactions involving digital commodities rather than prediction markets. The revised text also offers additional clarity for credit unions seeking to engage in digital-asset activities.

The legislation still faces political hurdles before it can advance. A cloture vote is scheduled for Tuesday, Sept. 15, and the measure will need 60 votes to proceed, meaning Republicans will require support from Democrats.

Democratic lawmakers continue to raise concerns about ethics rules involving President Donald Trump and other senior officials who could potentially benefit financially from crypto-related activities. Some Democrats have made progress on those provisions a condition for supporting the bill.

Republican Senator Thom Tillis said the White House needs to participate more directly in negotiations over the ethics issue. Meanwhile, some Republicans have expressed concerns about other provisions of the legislation.

Stablecoin rewards and yield programs remain another major area of disagreement. The American Bankers Association, Independent Community Bankers of America and 77 state banking associations have called for stricter limits on these programs.

The White House has encouraged lawmakers to keep the legislation moving. Crypto adviser Patrick Witt urged senators from both parties to support the procedural vote, while Treasury Secretary Scott Bessent warned that failing to advance the bill could weaken U.S. leadership in digital assets and limit national-security tools.

Industry groups are also pushing for progress. Cody Carbone of the Digital Chamber urged lawmakers to continue negotiations and move forward with legislation after years of bipartisan work.

The Sept. 15 vote will be an important test for the CLARITY Act. Even if the bill clears the procedural hurdle, disputes over DeFi regulation, stablecoin rewards, ethics provisions and other issues could continue to complicate its path to final passage.