US Senator Cynthia Lummis rejected claims that the Digital Asset Market Clarity Act leaves DeFi developers vulnerable to legal risks.
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- Loomis said the recent changes to Title 3 will create the strongest protections for DeFi developers in the law.
- Jake Chervinsky warned that developers of non-custodial software may still face liability for sending money under the current language.
- Senate talks continue as lawmakers review the CLARITY Act ahead of expected committee markup.
Ha answer This came after cryptocurrency lawyer Jake Chervinsky said Section 3 of the latest Senate draft could still place some non-custodial software creators under money transfer rules.
Loomis said current criticism does not reflect the latest work on the bill. In a post on
She also said lawmakers must pass the Clarity Act for these protections to take effect. Her comments came as Senate negotiations continued on the market structure bill and with the broader cryptocurrency industry closely watching the next version of the text.
Chervinsky said his main concern is that developers of non-custodial software can still be misclassified as money senders. He said that this issue is still unresolved, and said that this point is “non-negotiable for DeFi.”
The discussion focuses on how Section 3 interacts with blockchain regulatory certainty law. The BRCA Act, introduced by Lummis and Sen. Ron Wyden in January, says developers and infrastructure providers who do not control users’ funds should not be treated as money transmitters under federal law.
Furthermore, the DeFi Education Fund said the January Senate draft includes the BRCA in Section 604 and self-custodial language in Section 605. Meanwhile, it said the same draft added a new Title 3 with illicit financing provisions that could still impact DeFi technology and developers.
This concern has increased following recent enforcement actions in the United States. The Ministry of Justice said Tornado Cash Co-founder Roman Sturm was convicted on August 6, 2025, of conspiracy to operate an unlicensed money transmitter business.
Senate talks continue as the bill remains under review
The Senate Banking Committee had planned to tokenize digital asset market structure legislation on January 15. Then-Chairman Tim Scott said on January 14 that markup would be postponed while bipartisan negotiations continued.
Reuters later reported that the bill was still facing disputes in March, with banks opposed to stablecoin rewards features that could lure deposits away from traditional lenders. This broader battle has been preserved The law of clarity It is under review while lawmakers work on the next step.
