Revised CLARITY Act requires 60 votes to target non-decentralized DeFi protocols under SEC and CFTC jurisdiction

A revised version of the Clarity Act has been circulated by Republicans ahead of a procedural Senate vote scheduled for September 15. To pass, the measure requires 60 votes, meaning Republicans must secure support from Democrats despite disagreements over ethics, anti-money laundering protections, and stablecoin rewards. The text directs United States regulators to determine whether individuals or groups controlling non-decentralized finance trading protocols must comply with securities, commodities, and anti-money laundering requirements. A protocol is defined as one where functionality, operation, or rules can be materially altered by a person or coordinated group, or where controllers can restrict users and transactions are not governed solely by transparent code. Under the proposal, the Securities and Exchange Commission and Commodity Futures Trading Commission would develop activity-based rules covering registration, conduct, disclosure, recordkeeping, and supervision. The Treasury Department would establish how Bank Secrecy Act obligations apply to affected controllers. Software and distributed ledger systems are not required to register in their own capacity. Participation in an incident-response or security council does not by itself establish control over a protocol.