Senate Unveils Revised CLARITY Act Amid Uncertainty Over Ethics Rules

The US Senate Banking Committee has released a revised version of the CLARITY Act, which aims to provide clarity in the regulation of digital assets. After months of deadlock and negotiations, the committee has finally unveiled a new draft of the bill, which addresses several key concerns raised by industry stakeholders.

One of the main compromises included in the revised draft is the stablecoin yield agreement, negotiated by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks. This clause addresses traditional banks' fears about deposit migration to crypto platforms while preserving room for innovation in rewarding user engagement.

The new draft also includes a compromise on Section 1960 language, which determines whether software developers get classified as money transmitters under federal laws. The revised language protects non-custodial software developers from being automatically classified as money transmitters simply for building code that others might use for transactions.