New CLARITY Act Draft Adjusts DeFi and Credit Union Rules as Path Forward Unclear

The CLARITY Act will need at least 60 Senate votes when lawmakers return from recess next week. Republicans released a revised version of the legislation on Thursday ahead of the scheduled vote.

The latest draft of the Digital Asset Market CLARITY Act introduces changes to how the proposed framework would treat decentralized finance companies and certain traditional financial institutions involved in crypto-related activities. However, the revisions are not expected to represent a final compromise capable of securing enough Democratic support.

The new version includes additional requirements for some DeFi operations. Much of the legislation remains similar to earlier drafts, with the broader goal of establishing how federal regulators would supervise cryptocurrency activities across the United States.

Senator Cynthia Lummis, a Republican and one of the bill’s leading negotiators, urged lawmakers to continue working toward legislation rather than leaving the future of crypto regulation entirely to agencies such as the Commodity Futures Trading Commission and the Securities and Exchange Commission.

Lummis said lawmakers had incorporated more than 114 provisions requested by Democratic senators, arguing that the result represents a meaningful bipartisan effort. She also maintained that legislation would provide the crypto industry with greater long-term certainty than regulatory rulemaking, which could change as administrations shift.

According to Lummis, the latest draft outlines circumstances under which DeFi projects would have to register with the CFTC and comply with Bank Secrecy Act requirements. It also clarifies that the DeFi provisions are focused on spot-market and cash transactions involving digital commodities rather than prediction markets. In addition, the draft provides greater clarity for credit unions dealing with digital assets.

Despite those changes, the bill’s chances of advancing remain uncertain. The Senate is scheduled to hold its first procedural vote on Tuesday, Sept. 15. The cloture vote requires 60 senators, meaning the legislation will need support from members of both parties.

Democrats remain concerned about the absence of a bipartisan ethics agreement addressing whether President Donald Trump and other senior administration officials could benefit financially from crypto businesses. Senator Thom Tillis, a Republican from North Carolina, said earlier in the week that the White House still needed to participate in negotiations over a bipartisan ethics proposal.

Several Democratic lawmakers have indicated they would not support the legislation without an agreement on the ethics provisions and approval from Trump. At the same time, some Republicans have raised concerns about other parts of the bill.

White House crypto adviser Patrick Witt encouraged both Republicans and Democrats to support Tuesday’s procedural vote so the negotiations can continue. He argued that moving the bill forward would allow lawmakers to keep working toward a final agreement.

Treasury Secretary Scott Bessent also urged senators to clear the initial procedural hurdle and continue negotiations. He warned that failing to advance the legislation could send a negative message about U.S. leadership in digital assets and blockchain technology while limiting efforts to strengthen national security protections against crypto-related misuse.

Another area of concern involves stablecoin rewards and yield. In the weeks before the Senate’s summer recess, lawmakers debated provisions governing these incentives. On Thursday, the American Bankers Association, Independent Community Bankers of America and 77 state banking associations sent lawmakers a letter calling for tighter limits on rewards offered by stablecoin issuers.

Crypto industry groups, meanwhile, have continued to push for the legislation to advance. Cody Carbone of the Digital Chamber described the latest draft as the product of years of bipartisan negotiations and urged the Senate to act.

With the Sept. 15 procedural vote approaching, the bill faces a critical test. Securing 60 votes would keep the legislative process moving, but disagreements over DeFi regulation, stablecoin rewards, ethics provisions and broader bipartisan concerns could still determine whether the CLARITY Act ultimately advances.

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