Senate Updates CLARITY Act With New DeFi Rules and Stronger CFTC Oversight

Highlights:

• Senate Republicans updated the CLARITY Act with new DeFi rules, stronger CFTC oversight, and clearer powers for credit unions.
• Non-decentralized DeFi protocols may need CFTC registration when identifiable groups retain meaningful control over operations.
• Stablecoin yield, ethics, and Blockchain Regulatory Certainty Act provisions remain unchanged in the latest Senate draft.

Senate Republicans have released a new version of the Digital Asset Market Clarity Act, with changes covering DeFi regulation, Commodity Futures Trading Commission (CFTC) oversight and the use of crypto services by federal credit unions. The updated draft follows talks held during the August recess, although several closely watched parts of the bill remain unchanged.

Crypto journalist Eleanor Terrett shared the revised Senate draft of H.R. 3633 on September 11. The bill aims to clarify U.S. crypto regulation by defining how oversight should be divided between the CFTC and the Securities and Exchange Commission (SEC). The latest draft is 630 pages long.

The update comes just days before a key Senate procedural vote scheduled for September 15. Senators will vote on whether to move forward with considering the CLARITY Act, rather than on final passage of the bill itself.

🚨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

CLARITY Act Adds Rules for Non-Decentralized DeFi

One of the main changes focuses on DeFi platforms that describe themselves as decentralized but still have a person or group with meaningful control over how the protocol operates.

Terrett said:

“The changes here include: Requiring non-decentralized DeFi protocols to register with the CFTC.”

The bill provides a more detailed definition of a “non-decentralized finance trading protocol.” A protocol could fall into that category when a person or coordinated group has the authority to materially change its operation, functionality or rules. It may also qualify when transactions are not carried out solely through predetermined, transparent code.

Another factor is whether someone has the power to restrict, censor or block access to the protocol. However, simply taking part in incident response or a security council would not automatically amount to control.

Under the proposal, the CFTC would work with the SEC and the Treasury Department to create tailored rules explaining how people controlling these protocols must meet applicable Commodity Exchange Act requirements. For crypto developers, the wording creates a clearer distinction between genuinely decentralized protocols and platforms that keep significant control in the hands of a company, team or other group.

DeFi Rules Narrowed as Credit Union Powers Get Clarified

The updated CLARITY Act also limits parts of its DeFi framework to spot or cash digital commodity transactions. Terrett said the change appears to address concerns from tribes over blockchain-based prediction markets. The bill now draws a clearer line between CFTC-regulated spot markets and other areas, including futures and derivatives.

The new draft also gives federal credit unions clearer authority to use digital assets and distributed ledger technology. Credit unions could use blockchain or crypto to provide services they are already legally allowed to offer. However, they would still need to follow the same regulatory requirements that apply to those services.

Stablecoin Yield and Ethics Sections Stay the Same

Not every part of the CLARITY Act changed during the August negotiations. Terrett said the ethics section, Blockchain Regulatory Certainty Act provisions and stablecoin yield provisions remain the same. The Senate draft still includes a section addressing interest and yield on payment stablecoins, along with disclosure requirements for certain compensation tied to holding or using stablecoins. 

The latest draft remains proposed legislation, not final law. Still, the revisions offer a clearer picture of how Senate lawmakers are approaching U.S. crypto regulation, particularly the regulatory line between decentralized DeFi software and protocols that remain under identifiable control.

Despite the latest progress, traders remain doubtful the legislation will cross the finish line this year. Polymarket currently puts the chances of U.S. crypto market structure legislation becoming law in 2026 at just 18%. The low odds suggest traders see major hurdles ahead, even as lawmakers continue working on the bill.