Senate Republicans Release Latest CLARITY Act Text Addressing DeFi, Prediction Markets

Senate Republicans have released a new version of the CLARITY Act as they work toward a bipartisan deal with Democrats. This comes ahead of next week’s much-anticipated cloture vote, which will begin the process of passing the crypto bill.

Republicans Release New Version Of CLARITY Act Text

Senator Cynthia Lummis unveiled the 630-page text of the crypto bill, which includes several revisions to the landmark market structure legislation. “This updated Clarity Act text reflects bipartisan hard work over August,” she said in an X post.

The senator noted that the revised CLARITY Act text specifies when “decentralized-in-name-only” DeFi protocols must register with the CFTC. Furthermore, the bill now includes provisions which limit the DeFi provisions to spot and cash transactions to address concerns about prediction markets.

Senator Lummis also said the latest text includes over 100 changes Democrats requested as they work toward a bipartisan deal. The revised text also provides greater clarity on how credit unions can get involved with crypto.

The release of the revised CLARITY Act text comes ahead of the cloture vote on September 15, although it remains uncertain whether Republicans have the votes to invoke cloture and proceed to pass the bill. As CoinGape reported today, the crypto bill also faces a new hurdle as lawmakers clash over a vertical integration provision, with Democrats pushing for it and Republicans resisting.

Bill Still Lacking A Bipartisan Ethics Deal

The latest CLARITY Act text is still lacking a bipartisan ethics deal, which has been the major stumbling block to the bill’s progress. Before the Senate recess, Senators Thom Tillis and Ruben Gallego submitted a bipartisan ethics proposal to the White House, but there has yet to be an update.

With a bipartisan ethics deal still pending, the chances of the Senate passing the crypto bill remain low. Data from the top crypto prediction market platform Polymarket shows only a 19% chance that President Trump will sign the crypto bill into law.

Issues such as the stablecoin yield provision still loom. Banking groups continue to lobby against the yield provision in the CLARITY Act, with community banks arguing that stablecoin yields pose a risk of deposit flight.