Lummis Says CLARITY Act Added DeFi Sanctions Provisions Before Senate Vote
Cointelegraph reported Lummis’ position in a post on X. The Senate held a procedural vote on Sept. 15 on whether to proceed with H.R. 3633, the Digital Asset Market CLARITY Act. The motion failed, with every Senate Democrat voting against it.
CLARITY Act Included New DeFi Provisions
The final draft released by Lummis, Senate Banking Committee Chairman Tim Scott and Senate Agriculture Committee Chairman John Boozman on Sept. 14 included changes made during negotiations with Democratic lawmakers.
Lummis’ office said the final text reflected more than 120 substantive changes requested by Democrats. Among the provisions was language addressing non-decentralized finance protocols and when they would be required to register with the Commodity Futures Trading Commission and comply with the Bank Secrecy Act.
The updated text also specified that the DeFi-related provisions would apply to spot and cash digital commodity transactions. The provision was intended to address concerns about the legislation’s potential effects on prediction markets, according to Lummis’ office.
The legislation also included provisions concerning illicit finance, consumer protections, conflicts of interest and the regulatory treatment of digital asset activities.
Democrats Still Opposed the Procedural Vote
Despite the changes, the Senate failed to advance the bill on Sept. 15. The Senate Daily Press recorded the vote as a cloture vote on the motion to proceed to H.R. 3633. Lummis subsequently issued a statement saying every Senate Democrat had voted against the motion.
Lummis argued that Democratic lawmakers had received substantial changes they had requested during negotiations. Her characterization reflects the Republican side of the negotiations and was not the only explanation offered for the vote.
Democratic senators who had been involved in the negotiations said the current legislation did not fully address their concerns. In a statement released Sept. 16, Sens. Kirsten Gillibrand, Angela Alsobrooks, Cory Booker, Catherine Cortez Masto, Ruben Gallego, Mark Warner and Raphael Warnock said Democrats remained committed to passing crypto legislation while seeking provisions covering consumer protection, illicit finance and ethics for elected officials.
CLARITY Act Negotiations Remain Unresolved
The disagreement follows more than a year of negotiations over legislation intended to establish a federal regulatory framework for digital assets and clarify the respective roles of the Securities and Exchange Commission and the CFTC.
The Senate Banking Committee previously advanced the CLARITY Act in May by a 15-9 vote, with support from lawmakers of both parties.
The Sept. 15 procedural vote did not advance the legislation, leaving negotiations between lawmakers unresolved. Democratic senators involved in the process said the failed vote represented a setback rather than the end of efforts to reach a bipartisan agreement.
writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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