The updated Clarity Act has not yet been adopted: it is being prepared for a vote in the United States Senate on September 15. This is a bill on the regulation of the digital asset market in the US: it is intended to make the rules for crypto companies clearer, divide the powers of regulators, and establish an approach to DeFi, credit unions, and blockchain.
- Clarification of rules for the digital asset market.
- Adding requirements for DeFi protocols.
- Regulation of credit unions’ work with cryptocurrencies and blockchain.
What Has Changed in the New Version of the Bill
The US Congress has prepared amendments to the Clarity Act ahead of the key vote. The bill is intended to become one of the main frameworks for the digital asset market in the US and to divide areas of responsibility between regulators.
The main focus is on the DeFi sector. If a protocol cannot be recognized as fully decentralized, it will have to register with the CFTC and operate under the supervision rules for such platforms. For projects that do not meet these requirements, this may result in restrictions on working with users in the US and claims from the regulator. This approach should strengthen regulation, but at the same time preserve space for innovation, entrepreneurship, and the development of startups in the crypto industry.
A protocol will not be considered decentralized if third parties can manage its functions, restrict user access, or change the order of operation not according to predetermined and transparent rules. In this case, the project essentially falls outside the scope of a fully autonomous model.
The Clarity Act is important because it makes crypto market rules more transparent: projects understand in advance which regulator is responsible for their assets and what requirements must be met.
Credit Unions Will Be Given More Freedom
The amendments also concern federal credit unions. They will be officially allowed to use digital assets and distributed ledger systems for services already permitted by current legislation. This part includes operations related to payments, consumer services, and the use of new financial instruments.
The Clarity Act should help classify each asset in the market: as a security, commodity, or stablecoin. This determines who oversees it: the SEC, CFTC, or other relevant bodies.
The logic of classification is as follows:
- Asset type: security. Regulator: SEC. Classification criteria: the asset resembles an investment instrument and is associated with the issuer’s obligations to holders.
- Asset type: commodity. Regulator: CFTC. Classification criteria: the asset is traded as a market commodity and does not give the holder rights characteristic of securities.
- Asset type: stablecoin. Regulator: relevant bodies according to the rules for payment and reserve instruments. Classification criteria: the asset is pegged to the value of another asset and is used in settlements.
Why the Vote Was Postponed
Initially, the plan was to consider the crypto market architecture back in August, but the process shifted. The United States House of Representatives approved the document in July of last year, but further progress slowed due to disputes between the banking lobby and crypto companies over stablecoin yields.
Donald Trump previously urged lawmakers to adopt this law so that the United States would maintain its undisputed leadership in Bitcoin and cryptocurrency. For the US economy, this is a matter not only of financial oversight but also of competition for technology, trade, and new models of digital services on the Internet.
Work on the document is taking place against the backdrop of a broader crypto agenda, including the GENIUS Act. Relevant platforms may be involved in the discussion, including the United States Senate Committee on Banking, Housing, and Urban Affairs and the United States Senate Committee on Agriculture, Nutrition, and Forestry. Any committee working with such initiatives essentially determines the future rules of the game for digital assets.
What Problems Does the Clarity Act Solve
The main task of the Clarity Act is to remove uncertainty around the status of crypto assets. Three questions are especially important for the market now: how to distinguish a security from a commodity, where the boundary lies between the powers of the SEC and CFTC, and what rules DeFi protocols should follow.
- Asset classification: the bill sets a framework for dividing digital assets into securities, commodities, and stablecoins.
- Division of oversight: the Clarity Act should reduce conflict between the SEC and CFTC by making areas of responsibility clearer.
- Rules for DeFi: protocols with external management will not be able to claim full decentralization and will have to register.
- Credit union operations: federal credit unions will be able to use digital assets and blockchain in already permitted services.
Chances of the Clarity Act Being Adopted
The chances of adoption look real, but not guaranteed. In favor of the bill is the fact that the US House of Representatives has already approved the document, and Donald Trump has publicly urged lawmakers to support this initiative. Working against it is the political dispute over stablecoin yields: it has already slowed the document’s progress due to disagreements between the banking lobby and crypto companies.
The likelihood of adoption will be influenced by the position of the US Senate, lawmakers’ willingness to reach an agreement on stablecoins, and the balance between stricter oversight and preserving space for innovation.
How the Clarity Act May Affect XRP and the Market
For XRP, the key will be the classification mechanism. If the asset is classified as a commodity, primary oversight may shift to the CFTC; if it is recognized as a security, the SEC will retain the main role. For XRP holders, this means more clarity on the legal status of the asset, and for issuers and related companies, clearer requirements for operating in the US market.
If the Clarity Act is not adopted, the crypto market will remain in the same situation: the status of many assets will be determined by existing rules and regulatory decisions, and the dispute between the SEC and CFTC will continue to create uncertainty for projects, investors, and services working with digital assets.
What Is Important to Know About DeFi and the CFTC
Decentralized finance, or DeFi, is a set of financial services based on blockchain, where users can trade, invest, and borrow directly, without banks, brokers, or other traditional intermediaries. Such systems usually operate through smart contracts that automatically execute specified rules.
The CFTC, or United States Commodity Futures Trading Commission, is an independent regulator of the US government responsible for futures and options markets. In the crypto sphere, it often deals with assets that fall into the commodity category and ensures that market participants are protected from manipulation and fraud.
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