Senator Lummis Unveils Updated CLARITY Act Text: Key Changes Explained

The CLARITY Act has received a major update just days before its key Senate vote, with Senator Cynthia Lummis unveiling a 630-page revised text containing more than 100 changes requested by Democrats.Here’s what changed and what remains unchanged. And how will this impact the September 15 Vote?Lummis Unveils 630-Page CLARITY Act UpdateReleased on Thursday, the revised bill reflects negotiations held during the August recess as Senate Republicans try to secure the 60 votes needed for the September 15 cloture vote.Senator Cynthia Lummis said the changes aim to address concerns raised by Democrats and other groups while helping the bill move toward Senate debate.Lummis said, “This updated CLARITY Act text reflects bipartisan hard work over August.” “Overall, this text contains over 100 changes requested by Democrats. Let’s get this done!” While the new version makes changes across several areas, one of the biggest updates deals with how the bill defines and regulates decentralized finance (DeFi).Key Changes in the CLARITY ActThe updated CLARITY Act includes several changes, with new rules covering DeFi and the role of credit unions.DeFi Rules Get StricterThe updated text creates clearer rules for protocols that call themselves decentralized but remain controlled by a company, team, or individual.Under the new language, these “decentralized-in-name-only” platforms could be required to register with the Commodity Futures Trading Commission (CFTC).The bill also limits its DeFi rules to spot or cash digital commodity transactions. This change appears to address concerns from Native American tribes over blockchain-based prediction markets.Credit Unions Get Clearer Crypto PowersThe update also gives credit unions clearer rules for handling digital assets.Under the new language, credit unions could hold, store, and offer crypto services to their members. This would give them clearer authority to provide digital asset services alongside larger banks.What Has Remained Unchanged in the CLARITY Act UpdateDespite changes in several areas, two major issues remain unchanged in the latest CLARITY Act version.Firstly, the ethics section remains unchanged from the July draft. It blocks federal officials and their spouses from sponsoring digital assets, but does not include the stronger rules targeting President Donald Trump’s family business interests that Senate Democrats are seeking.The stablecoin rules have also not changed. The bill still allows certain stablecoin yield rewards under specific conditions, while its Bank Secrecy Act rules remain unchanged.These provisions have kept the American Bankers Association opposed to Section 10404. The group argues that the stablecoin rules could give crypto firms an advantage over traditional banks.September 15 Vote Now Becomes CriticalWith the vote only days away, Lummis’ updated text shows lawmakers are still trying to bridge the remaining gaps before the Senate decides whether CLARITY moves forward.If the cloture vote succeeds, the Senate can formally take up the CLARITY Act for debate and amendments. If it fails, the bill could face another major setback.