Updated CLARITY Act Draft Adds Insider Trading Provisions and Key Revisions

KuCoinFlash

Release Time: 05/12/2026 11:35:51

Summary

The U.S. Senate Banking Committee recently released an updated draft of the CLARITY Act, featuring significant revisions to definitions, SEC authority, and insider trading rules. Section 109 introduces new insider trading provisions, while Chapter 2 replaces “common control” with “coordinated control.” The boundaries between DeFi and CeFi are clarified in Section 301, and the CFT (Countering the Financing of Terrorism) remains a key focus of the regulatory scope. Liquidity and crypto markets may be impacted by the narrowing of SEC tokenization powers in Section 505. Section 904 adds the “Build Now Act,” and the Blockchain Regulatory Certainty Act remains largely unchanged.

Odaily Planet Daily report: Alex Thorn, Research Director at Galaxy Research, stated that the U.S. Senate Banking Committee has released the first updated full draft of the CLARITY Act since January this year. The new draft includes significant revisions to several key sections, including:

Substantially revise Chapter 1 regarding definitions and the authority of the U.S. Securities and Exchange Commission (SEC); add new Section 109 on insider trading; update “common control” to “coordinated control” in Chapter 2; rewrite Section 301 to further clarify the regulatory boundaries between DeFi and CeFi; update Section 404 to incorporate the compromise proposal by Tillis and Alsobrooks; adjust Section 505 to narrow the scope of SEC’s authority limitations in tokenization; restructure the bankruptcy and insolvency framework in Sections 701 and 702; additionally, introduce new Section 904, the “Build Now Act.”

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

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