Senator Cynthia Lummis says the updated CLARITY Act will provide the strongest legal protections for DeFi and software developers ever enacted, countering criticism from crypto legal experts.
Critics, including crypto lawyer Jake Chervinsky, warn that Title 3 of the bill could still classify non-custodial DeFi developers as money transmitters, exposing them to liability under Bank Secrecy Act rules. Lummis insists bipartisan revisions close those gaps, ensuring innovators aren’t misclassified.
The bill incorporates the Blockchain Regulatory Certainty Act, shielding non-controlling developers from KYC obligations. Still, Chervinsky calls clear developer immunity 'non-negotiable,' citing the Roman Storm conviction as evidence of legal risk.
Lawmakers expect a Senate Banking Committee markup in April, with Lummis arguing passage is essential to secure legal clarity for decentralized technology builders.