Senate Unveils Revised CLARITY Act

The United States Senate has unveiled a revised, 616-page version of the Digital Market Clarity Act, a bill intended to create a comprehensive federal regulatory framework for cryptocurrencies. The proposal amends the Federal Reserve Act to bar Federal Reserve Banks from offering products or services directly to individuals and prohibits the use of any central bank digital currency for implementing monetary policy. It also introduces a formal legal definition of a “digital commodity,” covering blockchain-based assets distinct from traditional securities. Major U.S. banking trade groups quickly voiced concerns, warning that the bill’s stablecoin provisions could divert deposits and weaken community lending activity.