US Senators Propose Over 100 Amendments to Clarity Act, Raising Concerns About DeFi Impact

A recent development in the US Senate's discussion on the Clarity Act, a bill aimed at regulating the cryptocurrency market, has raised concerns among decentralized finance (DeFi) experts. The proposed amendments, submitted by members of the Senate Banking Committee, have sparked debate over their potential impact on DeFi technology and users.

Among the changes proposed are revisions to the Blockchain Regulatory Certainty Act (BRCA), which could hold software developers liable for facilitating criminal activity through DeFi protocols. Critics argue that this approach could target open-source software development activities and put significant pressure on DeFi developers in the US.

The proposed amendments also aim to expand anti-money laundering (AML) obligations for DeFi platforms, redefine digital asset companies as financial institutions, and create specific AML and anti-terrorism financing obligations for certain DeFi businesses and interfaces. The changes have been met with opposition from the DeFi Education Fund (DEF), which has urged its supporters to pressure senators ahead of the Senate vote.