Clarification Act and new DeFi regulations have been implemented, and there are still variables in the cross-party game

According to WooFunai, the US Senate cryptocurrency regulation legislation process has reached a critical juncture, and the latest draft of the “Digital Asset Market Clarity Act” was led by Republican Congressman Cynthia Loomis. The bill aims to reshape the federal regulatory framework, clarify the boundaries of jurisdiction between the US Commodity Futures Trading Commission and the US Securities and Exchange Commission in the field of digital assets, and seek to establish lasting rules for the industry through legislation rather than relying on temporary policy adjustments by the executive branch.

At the level of regulatory rules, the new draft imposes more specific compliance requirements for decentralized finance (DeFi) entities. According to data compiled by WooFunai, this revision incorporates a total of 114 different provisions. The core change is to clarify the trigger conditions for DeFi projects to register with the US Commodity Futures Trading Commission and make them comply with the relevant provisions of the Bank Secrecy Act.

It is worth noting that the law strictly limits the scope of application, stipulates that DeFi-related provisions only target spot and cash transactions of digital products, and clearly excludes predictive market business. Furthermore, for credit cooperatives in traditional financial institutions, the draft provides more clear digital asset processing guidelines. As the main negotiator, Loomis continued to push for amendments during the Senate recess in August. She emphasized that legislation is superior to administrative rulemaking, believing that only cross-party compromise can ensure that the industry is protected from White House policy changes, and pointed out that even without the bill, the two major regulators will introduce their own rules, so reaching a lasting consensus is in America's long-term interests.

However, the bill's political future remains uncertain. The vote to end the debate scheduled to be held on Tuesday, September 15 is the primary procedural obstacle. The vote requires the support of 60 senators before it can proceed, which means it is necessary to obtain endorsement from some Democrats.

Currently, there are strong concerns within the Democratic Party over the bill's lack of a cross-party ethics agreement to bind Donald Trump and other senior government officials to profit from the cryptocurrency business. North Carolina Republican Senator Tom Tillis revealed to Semafor that the White House still needs to discuss the relevant proposals. Since Trump has yet to agree to the ethics provisions, some Democrats have made it clear that they will not support the bill.

Meanwhile, there are differences within the Republican Party. White House cryptocurrency adviser Patrick Witt called on the X platform for all senators to vote for Tuesday to continue the legislative process, but did not respond to CoinDesk's request for comment. In a post on the X platform on Wednesday, US Treasury Secretary Scott Bessent strongly urged lawmakers to stay at the negotiating table, warning that if legislation stagnates, it would send a dangerous signal to allies and rivals that the US would relinquish its digital asset leadership and national security containment capabilities.

In addition to political games, industry concerns about the details of stablecoin regulation are also growing. Earlier, before the summer Senate adjourned, many lawmakers had raised objections to the bill's provisions on stablecoin yields and reward mechanisms. On Thursday, the American Bankers Association, the American Independent Community Bankers Association, and 77 state-level banking associations sent a joint letter to lawmakers calling for stricter restrictions on the rewards stablecoin companies can provide to prevent potential financial risks. Digital Chamber of Commerce head Cody Carbonne pointed out in a statement that the draft reflects years of cross-party efforts, and the Senate must act immediately; otherwise, America's global leadership in digital assets and blockchain innovation may risk being surpassed by other countries. As voting day on September 15 approaches, a game between the various parties over ethics, regulatory details, and national strategic interests will determine the ultimate fate of the bill.