The revised CLARITY Act would shift decentralized finance compliance obligations to individuals or coordinated groups controlling non-decentralized protocols. A protocol qualifies as non-decentralized if its functionality, operation, or rules can be materially altered by an identifiable person or coordinated group. The SEC and CFTC would write activity-based rules covering registration, conduct, disclosure, recordkeeping, and supervision, while Treasury would determine how the Bank Secrecy Act applies to affected controllers. The September 15 cloture vote requires 60 votes and remains uncertain due to unresolved disputes over ethics provisions, anti-money-laundering protections, and stablecoin rewards.
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