The CLARITY Act changed again this week, just five days ahead of a crucial Senate procedural vote on September 10. The new 630-page draft includes updated rules for crypto protocols that describe themselves as decentralized but continue to be controlled by a company, founder, or coordinated group. Those platforms may be forced to register with the Commodity Futures Trading Commission (CFTC).

The bill’s effect on genuinely decentralized DeFi is significantly more nuanced. The CLARITY Act preserves protections for non-custodial software development and self-custody while trying to draw a clearer legal line between autonomous protocols and centralized businesses operating under DeFi branding. That…