Crypto Lobby’s Bold Fight Against Anti‑DeFi Amendments: Will the CLARITY Act Survive?

by

Crypto Lobby Battles ‘Anti-DeFi’ Amendments Ahead of CLARITY Act Vote

Show AI Summary
The DeFi Education Fund is rallying opposition to proposed CLARITY Act amendments that could expand liability for developers and DeFi platforms.
Over 100 amendments have been submitted to the Senate Banking Committee, which will select key changes to the bill before it advances to the Senate floor.
The approved amendments could significantly alter the regulatory landscape for digital asset markets, affecting protections for developers and anti-money laundering obligations.

The DeFi Education Fund is working to block changes to the CLARITY Act, claiming these changes would make developers and DeFi platforms legally responsible for far more than they are now. These proposed changes were made before the U.S. Senate Banking Committee is scheduled to review the bill on Thursday.

On Wednesday, the DeFi Education Fund shared on X (formerly Twitter) that they are monitoring proposed changes they consider harmful to decentralized finance (DeFi). They encouraged people who support DeFi to reach out to their senators before the committee votes on these amendments.

DEF is monitoring potential changes to the Clarity Act that could negatively impact decentralized finance (DeFi). As the Senate Banking Committee prepares to review and vote on the bill, Senators are submitting amendments. Since not all proposed changes will be discussed, we have a chance to encourage Senators to…

— DeFi Education Fund (@fund_defi) May 13, 2026

More than 100 amendments filed

On Tuesday, members of the Senate Banking Committee proposed over 100 changes to the CLARITY Act. While not all of these changes will be discussed, the ones that are could significantly impact the bill before it goes to a full Senate vote.

The CLARITY Act aims to create national rules for digital asset markets and clearly define which agency – the Securities and Exchange Commission or the Commodity Futures Trading Commission – oversees each part of the market.

Developer protections under scrutiny

Some proposed changes focus on protecting software developers who don’t directly manage users’ funds. The DeFi Education Fund explained that amendments from Senator Catherine Cortez Masto would significantly alter or eliminate sections of the Blockchain Regulatory Certainty Act (BRCA). This act, now part of the CLARITY Act, aims to prevent developers of non-custodial software from being classified as money transmitters.

Some suggested changes would eliminate safeguards for developers who aren’t in a leading role, specifically in Sections 301 and 302 of the bill.

AML rules could expand to DeFi platforms

As an analyst, I’m tracking proposed changes that would significantly expand anti-money laundering regulations for companies dealing with digital assets, including some DeFi platforms. Specifically, Senator Andy Kim is pushing for legislation that would redefine ‘financial institution’ under existing law to encompass these digital asset businesses. This means they’d be subject to the same reporting and compliance requirements as traditional banks.

Senator Elizabeth Warren has proposed changes that would require certain DeFi platforms and businesses to follow anti-money laundering and counter-terrorism financing rules. She also suggested closing what her team calls “loopholes” related to tokenization.

Criminal liability concerns

The DeFi Education Fund raised concerns about changes proposed by Senator Chris Van Hollen, which they believe could make developers legally responsible if their software is used for illegal activities like money laundering or breaking sanctions.

Senator Jack Reed has proposed two changes. One would impose sanctions on smart contracts, even if they run on their own or can’t be changed. The other would completely remove the BRCA provision from the CLARITY Act, according to a related group.

Industry pushes to preserve existing language

On Thursday, the Senate Banking Committee will discuss and vote on changes to the bill. This is an important step in deciding if the bill will move forward for a vote by the entire Senate.

Read More

2026-05-13 19:10