Lummis defends the CLARITY Act, DeFi developers face concerns over KYC

CoinNetwork · 2026-03-28T09:47:59+00:00

U.S. Senator Cynthia Lummis stated that Chapter 3 of the CLARITY Act will protect DeFi developers, but analysts warn that it may still be regarded as a remittance institution and face compliance burdens. The bill is still under negotiation, and its future form is undecided.

CoinNetwork

2026-03-28 09:47:59

Abstract generation in progress

U.S. Senator Cynthia Lummis claims that Chapter 3 of the bipartisan revised CLARITY Act will provide the strongest protections for decentralized finance (DeFi) developers, thereby alleviating concerns about the bill potentially imposing “know your customer” (KYC) requirements on non-custodial platforms. However, critics like analyst Jake Chervinsky warn that the bill’s wording could still misclassify such developers as money transmitters, subjecting them to heavy compliance burdens. The bill is still under negotiation, and its final form, as well as its alignment with other legislative frameworks like the Blockchain Regulatory Certainty Act, has yet to be resolved.

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