According to Mars Finance, US Senator Lummis stated that the newly revised CLARITY Act will provide "the strongest protection ever" for DeFi and developers, and called for its swift passage. Lummis's statement responded to criticisms from crypto lawyer Jake Chervinsky, who argued that the current draft's definition of "funds transmitters" in Chapter 3 could still include non-custodial software developers within the regulatory scope, thus weakening the legal protection originally provided by the Blockchain Regulatory Certainty Act. Lummis emphasized that recent bipartisan adjustments to relevant clauses aim to ensure that non-custodial developers are not wrongly classified as financial institutions, thereby avoiding mandatory KYC and other compliance obligations. Despite this, industry disagreements persist. Chervinsky pointed out that the controversy surrounding stablecoin yield clauses has overshadowed the issue of developer protection, and "avoiding the misclassification of developers as funds 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 passage depends on the outcome of negotiations on key clauses.
US Senator Lummis strongly supports the CLARITY bill: it will provide the "strongest" DeFi developer protection in history.
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