The Final Stretch for the Clarity Act: Critical Provisions for Trump and DeFi Finalized

The final draft of the historic Clarity Act, which will regulate the cryptocurrency market in the U.S. Senate, has surfaced with provisions granting exemptions to DeFi developers and temporary ethical restrictions for high-level officials.

As the U.S. Senate nears the end of the long-awaited market structure bill for the cryptocurrency industry, it has shared the latest working draft for the Digital Asset Market Structure Clarity Act (Clarity Act). This comprehensive text, consisting of hundreds of pages, aims to both ensure investor safety and fill legal gaps in the sector.

One of the most critical points of the draft was the preservation of the Blockchain Regulatory Certainty Act section, which closely concerns the decentralized finance (DeFi) ecosystem. According to this provision, developers who do not directly control users’ assets will not be classified as “money transmitters,” which carries heavy financial obligations. Additionally, the text includes federal preemption, temporary registration procedures, and new technical regulations regarding commodity pool operators.

Exemptions for DeFi Developers and New Registration Procedures

In the political arena, the focus of discussions remains on Donald Trump and other high-level state officials’ cryptocurrency asset relationships. Although the draft includes ethical rules limiting the direct crypto ties of the president and senior bureaucrats, these restrictions are planned as a temporary measure until 2029. The oversight of potential ethical violations and complaints will be handled directly by the Department of Justice (DOJ).

Temporary Ethical Rules for Trump and the Critical 16 Days

Democratic senators, following financial disclosures revealing that Trump earned over $1 billion from crypto investments last year, are citing these figures as evidence of conflict-of-interest allegations in the White House. Senate Majority Leader John Thune aims to bring the bill to a vote within the tight 16-day schedule before the summer recess. For the bill to pass, a total threshold of 60 votes must be reached with the support of at least 10 Democrats. Industry representatives characterize this move as the most concrete step taken toward getting the bill to the president’s desk.