Revised CLARITY Act Would Shift DeFi Compliance to Controllers - Cryptonews

A revised version of the CLARITY Act would place compliance obligations on the individuals or entities that control a decentralized finance protocol, rather than on the protocol's software or its broader user base. According to Cryptonews, the change is intended to clarify who is accountable when DeFi services fall within existing regulatory frameworks.

The distinction matters because DeFi protocols often operate through smart contracts with no single operator. By focusing on "controllers," the draft appears to acknowledge that some projects retain identifiable decision-makers, while others may not. That framing could shape how developers, foundations, and token holders assess their exposure.

What to watch is how "control" is ultimately defined, since that definition determines which parties would carry compliance duties. Also worth monitoring is whether the revised text advances through the legislative process and how regulators interpret it alongside existing rules. For market participants, the key takeaway is that DeFi oversight is being debated in terms of human accountability, not just code.