US senators say the CLARITY Act will provide stronger legal protections for DeFi developers.

Lummis: CLARITY Act Now Offers 'Strongest Protections' for DeFi Developers

Senator Cynthia Lummis is touting the latest version of the CLARITY Act. She says it offers the "strongest protections" yet for DeFi and its developers.

The comments came in response to concerns raised by crypto lawyer Jake Chervinsky about developer liability in earlier drafts. Lummis said bipartisan adjustments have been made to strengthen legal safeguards for non-custodial software developers.

Chervinsky, however, still sees some risk. He pointed out that the current draft's definition of "money transmission" could still expose some DeFi developers to liability. That language hasn't been fully clarified yet. The latest version of the bill hasn't been made public, but it's expected to move to the Senate Banking Committee for consideration in April.