Sen. Lummis: Strengthening Developer Protections in CLARITY Act
Senator Cynthia Lummis recently stated that efforts are underway to strengthen developer protections in the proposed CLARITY Act, as lawmakers continue to debate the future of crypto regulation in the US. The update comes at a time when the bill is facing delays and growing political friction.
This isn’t a big new hurdle, and is something I’m working on now. I am committed to keeping protections for non-money transmitting developers safe without tying law enforcement’s hands to hold bad actors accountable. https://t.co/1TwMTMwWz0
— Senator Cynthia Lummis (@SenLummis) April 28, 2026
Lummis acknowledged that concerns around developer protection are not new. She said work is ongoing to improve the provision so that non-custodial developers are protected, and bad actors are held accountable. The focus is on those creating decentralized systems, especially in the DeFi space, where developers often do not control user funds directly.
Clarity Act: A Saga of Policy Hiccups
Lummis said earlier this month that the Clarity Act bill is a positive step for the industry. The prospect of more clearly defined legal boundaries for participants in decentralized finance, she added, might bring that clarity. “The Clarity Act is the best thing that could happen to the DeFi community,” she said, stressing the idea that more clarity could prevent the builders and users of the space from facing uncertainty. But the bill has stalled.
The anticipated markup in April will now be unlikely, with no confirmed schedule from the Senate Banking Committee. The delay follows attempts by lawmakers to introduce more provisions, above all, around ethics and conflict of interest. Senate Democrats are now seeking to incorporate an ethics clause into the bill. Executive branch officials’ involvement with crypto assets would be limited under the proposal.
Reports say the action is partly prompted by fears about the business activities of crypto-linked companies associated with Donald Trump and his family. Richard Blumenthal has been outspoken on the subject. He weighed in on Trump recently, saying the president had normalized corruption and continued to profit from his position.
The comments came after lawmakers noted a crypto-related event tied to Trump. Ruben Gallego also mentioned that it requires bipartisan agreement on the ethics component. He said no final bill will be passed without agreement on this issue.
Support for the ethics clause has also come from across the party. Thom Tillis, a Republican member of the Senate Banking Committee, has supported its inclusion. He cautioned that without proper ethical language, he may vote against the bill.
Tillis has been central to negotiations, particularly around stablecoin-related provisions. Adam Schiff, who leads negotiations for Senate Democrats, meanwhile, said that talks are moving forward after a long period of limited progress.
Differences are narrowing as other pieces of the bill start taking shape, he said. That said, the ethics clause lies outside of the Senate Banking Committee’s domain. Such procedural complications arise even if there is agreement in principle. Then lawmakers will have to figure out how the rule would work and how it would affect existing crypto ventures. Several stakeholders, still negotiating at multiple levels, have been involved in negotiations.
On the Republican side, Lummis and others are collaborating with representatives associated with the administration. Industry groups are still pushing for clarity on stablecoin rules, yet another matter of the bill, which remains up for discussion. But as these obstacles remain, some market experts are hopeful. Billionaire investor Mike Novogratz has announced that he believes the CLARITY Act will pass by June.
