U.S. Senate Banking Committee Releases Updated CLARITY Act Draft

The U.S. Senate Banking Committee has released the first updated draft of the CLARITY Act since January, according to Odaily. Alex Thorn, Head of Research at Galaxy Research, highlighted significant revisions in several key sections of the draft. The updated draft includes a major rewrite of Chapter 1, addressing definitions and the authority of the U.S. Securities and Exchange Commission (SEC). A new insider trading clause, Section 109, has been added. Chapter 2 updates the term 'common control' to 'coordinated control.' Section 301 has been rewritten to further clarify the regulatory boundaries between decentralized finance (DeFi) and centralized finance (CeFi). Section 404 has been updated to incorporate a compromise plan by Tillis and Alsobrooks. Section 505 has been adjusted to narrow the scope of the SEC's authority in the tokenization sector. The bankruptcy and insolvency frameworks in Sections 701 and 702 have been restructured. Additionally, a new Section 904, titled 'Build Now Act,' has been introduced. Thorn also noted that Section 604, which pertains to the Blockchain Regulatory Certainty Act, retains its core protections for developers with only minor modifications.