Lummis Rejects Criticism on CLARITY Act's DeFi Developer Protections

US Senator Cynthia Lummis has addressed criticism that the Digital Asset Market Clarity Act (CLARITY Act) leaves decentralized finance (DeFi) developers vulnerable to legal risk. According to reports, recent changes to Title 3 aim to provide stronger protections for DeFi developers, but some critics remain concerned.

The debate centers on how Title 3 interacts with the Blockchain Regulatory Certainty Act, introduced by Lummis and Senator Ron Wyden in January. The BRCA clarifies that developers and infrastructure providers who do not control user funds should not be treated as money transmitters under federal law.