630 Page CLARITY Act Draft Drops Days Before Senate Vote With Major DeFi and Prediction Market Changes - CCN.com

A 630-page draft of the CLARITY Act has surfaced just days before a scheduled Senate vote, with reported changes touching two of crypto's most contested areas: decentralized finance (DeFi) and prediction markets. The timing is notable — releasing a draft of this length so close to a vote suggests lawmakers are still negotiating language rather than presenting a settled text.

For markets, the significance lies in what the bill proposes to clarify. DeFi has long sat in a regulatory gray zone, with developers and protocols unsure how existing securities and money-transmission rules apply to them. Prediction markets raise separate questions about derivatives oversight and event-based contracts. Any legislative language addressing these areas could reshape compliance expectations for projects and platforms operating in them.

What to watch: whether the draft's provisions survive the Senate process intact, how industry groups and regulators respond to specific clauses, and whether the final text narrows or broadens existing agency authority. A draft is not law — the gap between introduced language and enacted rules is often wide, and the coming vote is the first real test of where this lands.