Sen. Cynthia Lummis warned Wednesday that time is running out for the CLARITY Act, the long-awaited bill meant to bring a clearer regulatory framework to the crypto industry — and she stressed the immediate consequences for software developers if it stalls. Lummis, a prominent crypto ally, framed the legislation as a matter of legal survival for code writers. “If the Clarity Act doesn’t pass this Congress, American software developers will be targeted again for prosecution in the near future just for publishing code. These are the stakes,” she posted on X. Where the bill stands - This month the Senate Banking Committee approved its version of the CLARITY Act, following an earlier approval from the Agriculture Committee in January. - Major steps remain: a full Senate vote, reconciliation between House and Senate bills, and final congressional approval before it reaches the President’s desk. Why developers are watching Lummis and other supporters argue the current regulatory uncertainty puts developers and infrastructure providers at risk of enforcement action simply for writing or publishing code that supports blockchain networks. Without statutory clarity, enforcement priorities and agency interpretations — which can shift with administrations and appointees — leave code authors exposed to prosecution or regulatory scrutiny. Key provisions - The bill bundles the Blockchain Regulatory Certainty Act, intended to prevent software developers and infrastructure operators from being classified as money transmitters when they don’t control customer funds. - It also directs the SEC to clarify when securities laws apply to decentralized finance (DeFi) trading protocols, particularly where protocol activity is tied to securities. If the CLARITY Act fails this year, supporters say a change in administration or new regulatory leadership could raise enforcement pressure across the sector and renew legal risks for code publishers — echoing aggressive enforcement seen under the Biden administration and during former SEC Chair Gary Gensler’s tenure. Featured image created with OpenArt; chart from TradingView.com.
Lummis Warns Crypto Developers Face Prosecution Without CLARITY Act Passage
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Summary
Senator Cynthia Lummis said CFT concerns and legal risks in liquidity and crypto markets could punish developers if the CLARITY Act fails. The bill, cleared by Senate Banking and Agriculture Committees, stops coders from being labeled money transmitters and pushes the SEC to define DeFi under securities law. Without passage, code publishers risk legal exposure.
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