DeFi Provisions Gutted In Latest CLARITY Act Draft, Critics Say

Published by

Anjali Belgaumkar

September 15, 2026

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DeFi took a significant hit in the latest version of the CLARITY Act, with the Blockchain Regulatory Certainty Act scaled back in the process. One legal scholar called the change a “rug pull,” expressing deep disappointment while still urging lawmakers to pass the broader bill, arguing crypto is better off with it than without. The criticism centers on removed language that would have clarified criminal liability protections for DeFi developers. Critics are now pushing for floor statements and a presidential signing statement making clear that such criminal exposure was never intended under the bill’s original DeFi provisions, and that a specific prosecutorial interpretation from federal prosecutors misreads Congress’s actual intent.

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