BlockBeats news, on March 28, U.S. Senator Cynthia Lummis stated that the newly revised CLARITY Act will provide “the strongest protections ever” for DeFi and developers, calling for the swift passage of the bill.
Lummis made this statement in response to concerns raised by crypto lawyer Jake Chervinsky. The latter believes that the definition of “money transmitter” in Chapter 3 of the current draft could still bring non-custodial software developers under regulatory scrutiny, thereby weakening the legal protections originally provided by the Blockchain Regulatory Certainty Act.
Lummis emphasized that bipartisan adjustments have recently been made to relevant provisions, aimed at ensuring that non-custodial developers are not misclassified as financial institutions, thus avoiding being subjected to compliance obligations such as KYC.
Nevertheless, industry divisions remain. Chervinsky pointed out that the controversy over stablecoin yield provisions has overshadowed the issue of developer protection, and “avoiding misclassifying developers as money transmitters” remains a core challenge for DeFi regulation.
Currently, the bill is expected to enter the Senate Banking Committee review stage in April, and its final outcome will depend on the results of negotiations on key provisions among all parties.
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