CLARITY Act Draft Removes Sunset Clause and BRCA Criminal Protections

A analysis revealed that a revised draft of the U.S. CLARITY Act omits the 2029 sunset clause on restrictions for public officials regarding virtual asset conflicts of interest and removes criminal protection language related to 18 U.S.C. §1960 under the Blockchain Regulatory Certainty Act (BRCA). Alex Thorn, head of research at Galaxy Research, analyzed in an X post that the new draft broadens the scope of virtual asset conflict-of-interest restrictions for public officials and lowers the threshold for recognizing 'material financial interests.' Thorn also noted that BRCA's criminal protection provision for non-custodial developers under Section 1960 has been removed. The Block reported that a final draft of the CLARITY Act, partially reflecting Democratic demands, was released by Senate Republicans.