BlockBeats message, on March 28, U.S. Senator Cynthia Lummis stated that the latest revised CLARITY bill will provide “the strongest protection ever” for DeFi and developers, and called for the bill to be passed as soon as possible.
Lummis’s remarks were in response to concerns raised by crypto lawyer Jake Chervinsky. The latter believes that the definition of “money transmitters” in Chapter 3 of the current draft could still bring non-custodial software developers under regulatory scrutiny, thereby undermining the legal protections originally offered by the Blockchain Regulatory Certainty Act.
Lummis emphasized that recent bipartisan adjustments to the relevant provisions aim to ensure that non-custodial developers are not misclassified as financial institutions, thereby avoiding the imposition of compliance obligations such as KYC.
Nevertheless, divisions remain within the industry. Chervinsky pointed out that the controversy over stablecoin yield provisions has overshadowed the issue of developer protection, and “avoiding misclassification of developers as money transmitters” remains a core challenge of 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 among various parties on key provisions.