Updated Senate CLARITY Act draft adds CFTC registration for non-decentralized DeFi and limits to spot cash trades

Senate Republicans released an updated draft of the CLARITY Act reflecting changes negotiated during the August recess, with one key revision requiring non-decentralized DeFi protocols to register with the CFTC and aligning this with Section 10301 of the Senate Banking Committee version ^{[1] [2]}.

The revisions described by reporting limit the DeFi provisions to spot or cash transactions in digital commodities, and the reporting said this approach was aimed at addressing tribal concerns over blockchain-based prediction markets ^[1].

Another draft description said the bill includes registration requirements for controlled trading protocols while leaving its ethics provisions largely unchanged ^[2].

Industry reporting urged the Senate to advance the CLARITY Act ahead of a Tuesday vote ^[3].

Additional coverage said the draft would give the CFTC an explicit DeFi control test, and that registration depends on the activities performed ^[4].