US Senator Cynthia Lummis has defended recent changes to the Digital Asset Market Clarity Act, asserting they will provide strong protections for decentralized finance innovators. She countered criticism from crypto lawyer Jake Chervinsky, who argued the bill’s current draft could still expose non-custodial software developers to liability as money transmitters.
US Senator Cynthia Lummis has dismissed claims that the Digital Asset Market Clarity Act fails to protect decentralized finance innovators from legal repercussions. She stated recent changes to the draft will make it the “strongest protection for DeFi and developers ever enacted.”
Her comments came in direct response to crypto lawyer Jake Chervinsky, who argued that Title 3 of the current draft undermines the Blockchain Regulatory Certainty Act. Chervinsky contended it could subject non-custodial software developers to know-your-customer obligations. Lummis said, “Don’t believe the FUD.”
Chervinsky said his biggest issue is that Title 3’s money transmitter definitions could still expose many non-custodial DeFi builders to liability. He argued, “The biggest challenge is ensuring non-custodial software developers aren’t misclassified as money transmitters.”
His concerns come amid several high-profile prosecutions of developers in the US in recent months. This includes Tornado Cash co-founder Roman Storm, who was convicted in August 2025. US lawmakers have said the CLARITY Act is moving closer toward a Senate Banking Committee markup expected in April. Passage of the act is necessary to ensure DeFi developers are afforded legal protections under the BRCA, Lummis noted.
