{
  "id": 6720811,
  "title": "Revised CLARITY Act targets ‘non-decentralized’ DeFi operators",
  "url": "https://urgent.news/2026/09/11/revised-clarity-act-targets-non-decentralized-defi-operators",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-11T06:08:26.000Z",
  "source": {
    "name": "Cointelegraph",
    "slug": "cointelegraph",
    "url": "https://cointelegraph.com/news/revised-clarity-act-targets-non-decentralized-defi-operators"
  },
  "original_language": "en",
  "account": "The revised CLARITY Act, aimed at regulating non-decentralized finance (DeFi) operators, would require United States regulators to decide if controllers of such protocols must comply with securities, commodities, and anti-money laundering rules. This interpretation, outlined by Senator Cynthia Lummis, identifies a protocol as any system where functionality, operation, or rules can be significantly changed by an individual or a coordinated group. The proposal also covers protocols controlled by entities capable of restricting user access or governed by rules not solely derived from transparent, pre-set code.\n\nUnder the proposal, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) would establish activity-based regulations covering registration, conduct, disclosure, recordkeeping, and supervision. The Treasury Department would determine how existing Bank Secrecy Act obligations apply to affected protocol controllers. However, software and distributed ledger systems would not need to register as independent entities. Additionally, involvement in incident-response or security councils would not automatically establish control over a protocol.\n\nThe revised text was posted on Senator Lummis' website ahead of a procedural Senate vote scheduled for September 15, which requires 60 votes for advancement. This vote necessitates Republican support from Democrats, despite ongoing disagreements on ethics, anti-money laundering protections, and stablecoin rewards. Crypto Council for Innovation CEO Ji Hun Kim described the upcoming vote as a \"pivotal moment\" for digital assets, innovation, and American leadership, emphasizing the need for a framework that balances consumer protections with business conduct standards.\n\nCoinbase CEO Brian Armstrong confirmed that the CLARITY Act is ready for approval, noting that previously raised concerns by Coinbase have been addressed, although negotiations over ethics restrictions are still ongoing. While the newly released text maintains the largely unchanged ethics section, it has not resolved all contentious issues. Should the legislation fail to pass, the SEC and CFTC could rely on existing authority to implement rulemaking and innovation exemptions.",
  "summary": "The bill’s ethics section remained largely unchanged despite being one of the main points of contention ahead of a pivotal Senate vote.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}