A new 630 page draft of the U.S CLARITY Act is circulating in the Senate, just ahead of a procedural vote coming up on September 15. Senate Republicans rolled out the latest version after they spent August negotiating.
This new draft brings in more than 100 changes Democrats wanted, though it is not bipartisan yet. The bill covers DeFi, banks, credit unions, stablecoins, tokenized securities, self custody, crypto spot markets. The updates also try to address concerns Native American groups raised about blockchain prediction markets.
DeFi Rules Get More Specific
According to Eleanor Terrett, a well-known crypto journalist, DeFi got one of the biggest tweaks in the bill. DeFi products that are not fully decentralized have to register with the CFTC. The rule is a lot like Section 10301 from the Banking Committee’s part of the law.
🚨NEW: Senate Republicans have released updated Clarity Act text reflecting changes negotiated over the August recess.
There appear to be no changes to the ethics section. BRCA and stablecoin yield sections also remain the same.
The changes here include:
📌Requiring… PIC.TWITTER.COM/CYILR2VSLG
— Eleanor Terrett (@EleanorTerrett) SEPTEMBER 10, 2026
The draft draws a clearer line around which DeFi platforms should be regulated. If a person or group can change how a system works, controls its rules, or censor users, the platform would have to register with the CFTC. Truly decentralized systems would remain outside these requirements, while platforms that are decentralized only in name would still be subject to regulation.
The rules do not force the blockchain or underlying code to register, just the people actually controlling the system. Anti-money-laundering and Bank Secrecy Act requirements would stick to those controlling operators.
The DeFi rules are now narrowed down to spot or cash digital commodity transactions. This change has been probably proposed to calm Native American concerns over blockchain prediction markets.
Banks and Credit Unions Get Crypto Authority
The draft lays out exactly how banks and credit unions can handle digital assets. Their activities would include crypto custody and safekeeping, staking, lending, and loans backed by digital assets.
Banks would also be able to offer crypto payments, run blockchain nodes, and provide self custody wallet software. Brokerage, clearing, executing trades, plus some derivatives and hedging are in there too.
The law would let banks hold digital assets for liquidity, treasury, and settlement. It covers underwriting, dealing, and market-making with customer driven transactions. There is a clear section on credit unions’ authority in crypto as well, making it easier for financial institutions to use digital assets and blockchain technology for areas they are already allowed to handle.
Tokenized Securities and Self Custody
The bill states that putting a security on a blockchain does not change its legal status, a tokenized stock or security stays a security. The SEC gets power to adapt its rules for blockchain issues like custody, record-keeping, settlements, transfer-agent reconciliation. Within a year, the SEC must review tokenized securities more broadly.
The legislation also has protections for self-custodied crypto. Assets held via private keys cannot be labeled abandoned or unclaimed just because a wallet sits idle. Dormant coins cannot be seized or claimed by the government for that reason alone. But authorities can still investigate fraud, theft, money laundering, sanctions issues, and any other crime.
Stablecoin Rewards Face Restrictions
The new draft blocks crypto platforms from paying interest or yield just for holding a payment stablecoin. Rewards tied to actually using stablecoin like making payments or transfers, providing liquidity, staking, validation, or through loyalty programs are still allowed. Breaking these rules on purpose could cost a platform up to $5 million for each violation.
New Framework for Crypto Spot Markets
The CLARITY Act sets up a framework under the CFTC for crypto spot markets. Exchanges, brokers, and dealers get specific categories, and network tokens could be classified as digital commodities.
Meme coins count as digital commodities too. But NFTs, virtual land, collectibles, tickets and in-game assets mostly stay outside the category unless they are mass minted, interchangeable, and traded mainly for speculation. Then, they would be regulated as digital commodities.
Industry Fight Intensifies Before Senate Vote
Crypto advocates and community banks are both pushing hard before the September 15 vote. Crypto groups insist clearer rules will boost innovation and protect American jobs, while banking groups warn that stablecoin rewards could pull deposits away from traditional lenders.
Stand with Crypto says their supporters reached out to Congress almost 50,000 times last month. The Blockchain Association launched a campaign to get Americans calling senators, as community banks fired back with their own campaign against the stablecoin provisions.
Crypto groups have already spent around $190 million on political efforts. Coinbase CEO Brian Armstrong says the CLARITY Act is right on the finish line, adding that other G20 countries already passed similar laws.
There is a new ethics section too. Public officials and their spouses can hold crypto, but cannot accept payment to create, mint, launch, or openly prompt a specific digital asset.
If someone knowingly breaks this rule, they will have to give up all profits from the banned activity and pay a civil penalty: 10% of what they earned or $500,000, whichever is less. Any crypto business that knowingly lists a banned token could face up to $250,00 for each violation every day.
