Senate Republicans Unveil Revised CLARITY Act as Key Vote Nears

Senate Republicans have released a revised version of the CLARITY Act ahead of a crucial procedural vote on September 15 that could determine whether the long-awaited crypto market structure legislation passes.

Republican Senator Cynthia Lummis revealed the 630-page draft on Thursday. The bill would establish a federal framework for digital asset markets and clarify how regulatory authority is divided between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The Senate postponed consideration until after its August recess ends on September 14.

One of the main changes targets crypto platforms that claim to be decentralized while remaining under human control. The draft instructs the CFTC and Treasury to create rules for trading protocols that a person or coordinated group can control or materially alter. Lummis said the DeFi provisions had also been limited to spot and cash transactions in response to Native American concerns about prediction markets.

Lummis said the revision includes more than 100 changes requested by Democrats. Its ethics provisions remain largely unchanged and would bar public officials, employees, and their spouses from issuing or sponsoring digital assets for compensation while the official is serving.

The bill’s future remains uncertain. A cloture motion to advance consideration of the CLARITY Act will become eligible for a vote on September 15. This procedural vote would allow the chamber to begin considering the legislation and requires 60 votes. Republicans hold 53 Senate seats, meaning they would need at least seven votes from Democrats or independents. However, no Senate Democrats reportedly support the revised draft.

The approaching November midterm elections narrow the window for lawmakers to resolve their differences and pass the legislation this year.

Suggested read: What Is the CLARITY Act? Full Guide to US Crypto Regulation