Lummis: Updated Clarity Act Incorporates Over 100 Democrat-Requested Edits

Over 100 modifications sought by Democrats are included in the revised Clarity Act text, according to Senator Cynthia Lummis. She encouraged Democrats to assist in getting the legislation through.

The Senate Republicans' newest CLARITY Act draft spans 630 pages, an increase of 14 from the July 22 version. A procedural vote scheduled four days from now will determine if the legislation proceeds to the Senate floor.

This updated Clarity Act text reflects bipartisan hard work over August—specifying when decentralized-in-name-only DeFi protocols must register with the CFTC and limiting the DeFi provisions to spot and cash transactions, in response to Native American concerns about prediction…

— Senator Cynthia Lummis (@SenLummis) September 10, 2026

Changes Introduced in the Clarity Act’s September 10 Draft

The legislation continues to comprise four divisions and 103 sections. The alterations appear within about a dozen of those sections, all situated in the Banking and Agriculture titles.

BeInCrypto conducted a line-by-line comparison of the two Senate substitute versions. The September text diverges from the July one in 14 out of its 103 sections. Within those sections, 104 individual modifications were identified, yet merely 28 are longer than eight words.

Section 20209, the DeFi safe harbor, sees the most substantial expansion, growing from 285 words to roughly 2,200. A complete exemption from the Commodity Exchange Act is granted to validators, node operators, and anyone distributing wallet software.

Only spot-market regulations are lifted for front-ends, governance systems, liquidity pools, and the maintenance of such wallet software.

For protocols that are decentralized in name only, the CFTC is required to create rules governing controller compliance. This is a direct mandate rather than an automatic registration trigger, and the underlying code never needs to register. Subsequently, the Treasury will craft corresponding anti-money-laundering regulations for any entities brought under CFTC oversight.

A less conspicuous development lies in the preemption clause. State securities, commodities, and digital asset statutes no longer cover those activities, and the provision applies retroactively to conduct prior to enactment. However, state authority over fraud, manipulation, and anti-money laundering remains intact, shifting the battle to the line where licensing stops and fraud starts.

Division C, the ethics title that Democrats sought to modify, remains unchanged.

Provisions Republicans Kept Intact and Who Remains Opposed

Beyond the DeFi title, the less significant adjustments are found. Credit unions receive a more defined status based on definitions from the GENIUS Act, but the draft does not extend their authority to brokerage or dealing.

The CFTC's spot market oversight now applies to all payment stablecoins, not just those from licensed issuers. The legislation covers transactions conducted on or via an entity registered with the Commission. Additionally, states retain their authority to enforce fraud rules against registrants according to Section 20207.

Republicans also left untouched more than just the ethics title. Section 10404, prohibiting yield on payment stablecoins, matches the July draft exactly. The same applies to Section 10604, the developer protections commonly called the Blockchain Regulatory Certainty Act.

These two sections encounter considerable resistance. The American Bankers Association, together with 60 other banking organizations, urged Senate leaders to strengthen the rewards provisions. They cautioned about potential deposit outflows from community banks.

Republican Senators Josh Hawley and Jerry Moran have voiced apprehensions about this matter. On the other hand, Democrats have conditioned their backing on stricter ethics provisions addressing President Donald Trump's crypto assets.

On Tuesday afternoon, senators will decide whether to invoke cloture on the motion to proceed. A tally of 60 votes is required.