New CLARITY Act Draft Adds Insider Trading Provisions and Adjusts Multiple Key Sections

Alex Thorn, Head of Research at Galaxy Research, stated that the U.S. Senate Banking Committee has released the first updated complete draft of the CLARITY Act since January this year. The new draft makes significant adjustments across multiple key chapters, including:

A major rewrite of Chapter 1 regarding definitions and the authority of the U.S. Securities and Exchange Commission (SEC); the addition of Section 109 on insider trading; Chapter 2 updates "common control" to "coordinated control"; a rewrite of Section 301 to further clarify the regulatory boundaries between DeFi and CeFi; an update to Section 404 incorporating the compromise plan of Tillis and Alsobrooks; adjustments to Section 505 narrowing the scope of SEC authority over tokenization; and a restructuring of the bankruptcy and insolvency framework in Sections 701 and 702. Additionally, Section 904 is newly added, titled the "Build Now Act."

Alex Thorn also noted that the developer protection provisions of the Blockchain Regulatory Certainty Act in Section 604 remain largely intact, with only minor modifications that do not weaken its core protections.