The US Senate Banking Committee has presented an updated version of the CLARITY Act, which regulates the cryptocurrency industry. The document provides legal protection for the creators of DeFi protocols: they will not be classified as payment services if they do not have direct control over user funds. Restrictions are also imposed on the issuers of stablecoins, which are prohibited from charging interest that equates "stable coins" to bank deposits.

The section on conflict of interest is the most controversial. Democrats insist that officials should be prohibited from earning money from crypto assets. Senator Elizabeth Warren has said that President Trump’s family has earned $1.4 billion in crypto-currency deals, which means a tough legislative framework is needed. Previously, amendments limiting digital-asset transactions for the president, vice president, legislators, and federal officials had been proposed, but were not included in the final version.

For the law to come into force, it must go through a committee hearing on 14 May and then be merged with the version prepared by the Committee on Agriculture. At least 60 votes will be required in the Senate. Estimated completion date is August. The Democrats warned: without ethical compromise, they will not support the bill.