- Lummis rejects DeFi fears as CLARITY Act debate intensifies
- Crypto lawyer warns developers still face risks under new bill
- Lawmakers push revisions while uncertainty surrounds DeFi regulatory treatment
Senator Cynthia Lummis moved quickly to counter growing concerns surrounding the Digital Asset Market Clarity Act. Her remarks followed criticism from crypto lawyer Jake Chervinsky, who questioned how the bill treats decentralized finance developers. According to Lummis, recent revisions aim to provide stronger legal protections for developers operating non-custodial platforms.
She dismissed claims that the legislation weakens safeguards, urging the community not to rely on speculation. Additionally, she emphasized that bipartisan efforts in recent weeks have focused on improving key sections of the bill. These updates, she said, are designed to ensure developers are not unfairly subjected to regulatory burdens.
However, Chervinsky maintained that concerns remain unresolved within the current draft. He pointed to Title 3, which defines money transmission in a way that could still affect non-custodial developers. Consequently, this classification may expose builders to compliance requirements typically reserved for financial institutions.
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Moreover, the bill includes elements of the Blockchain Regulatory Certainty Act, which aims to clarify that developers without control over user funds should not face strict obligations. Despite this inclusion, critics argue that overlapping definitions may still create confusion in enforcement. As a result, developers remain uncertain about how regulators will interpret these provisions.
Title 3 Dispute Drives Crypto Policy Debate
The disagreement has centered on how the legislation defines responsibility within decentralized systems. Critics argue that vague language may lead to inconsistent enforcement across different projects. Additionally, they warn that developers could face liability even when they do not control user assets.
At the same time, Lummis reiterated that the updated draft strengthens protections rather than weakens them. She noted that lawmakers have worked across party lines to refine the bill before its next stage. Furthermore, she stressed that passing the CLARITY Act remains essential to securing legal clarity for developers.
The latest version of the draft has not yet been publicly released, which has added to uncertainty within the industry. This lack of visibility has fueled ongoing debate about how the final legislation will be structured.
Meanwhile, the discussion comes as lawmakers prepare for a potential Senate Banking Committee review expected in April. Recent progress on stablecoin-related provisions has moved the bill closer to that stage. As the process advances, the outcome may play a key role in shaping how decentralized finance operates under U.S. law.
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