U.S. Senator Lummis Endorses CLARITY Act: Will Provide "Strongest Ever" DeFi Developer Protection

BlockBeats News, March 28th, U.S. Senator Cynthia Lummis stated that the latest revised CLARITY Act will provide "the strongest protection ever" for DeFi and developers, and called for the swift passage of the bill.

In response to cryptocurrency lawyer Jake Chervinsky's concerns, Lummis' remarks addressed. Chervinsky believes that the current draft's definition of "money transmitter" in Chapter 3 may still bring non-custodial software developers under regulatory oversight, thereby undermining the legal protections originally provided by the Blockchain Regulatory Certainty Act.

Lummis emphasized that recent bipartisan adjustments to the relevant provisions are aimed at ensuring that non-custodial developers will not be misclassified as financial institutions, thereby avoiding mandatory compliance with KYC and other regulatory obligations.

Nevertheless, industry disagreements persist. Chervinsky pointed out that the stablecoin yield provision controversy has overshadowed the developer protection issue, and "avoiding mislabeling developers as money transmitters" remains a core challenge in DeFi regulation.

Currently, the bill is expected to enter the Senate Banking Committee's review stage in April, and its final outcome will still depend on the outcome of negotiations among various parties on key provisions.