On September 10, Senate Republicans dropped an updated version of the CLARITY Act, targeting crypto protocols that fall short of true decentralization. Senator Cynthia Lummis made the announcement, noting that the new draft is the product of bipartisan work throughout August and brings more clarity for the DeFi sector. The revised bill clocks in at 630 pages.

What’s Changing for DeFi

The updated text spells out when DeFi protocols—those that are “decentralized in name only”—will need to register with the CFTC. The changes also limit DeFi-related provisions to spot and cash transactions. According to Lummis, these tweaks were made after listening to concerns from Native American representatives.

Focus on Decentralization Criteria

The bill’s main goal is to clarify the status of crypto protocols that don’t live up to decentralization claims. For these, the Act sets out regulatory guidelines and registration requirements. The language makes it clear: this is all about the DeFi space, specifically spot and cash operations.