Cynthia Lummis Pushes Developer Safeguards in CLARITY Act

Highlights:

• Lummis says the CLARITY Act will protect developers who do not control user funds.
• Lawmakers are revising the bill to target criminals without affecting software builders.
• Developers could gain safe harbor periods to test and launch protocols without early enforcement.

U.S. Senator Cynthia Lummis said lawmakers are revising developer protections in the CLARITY Act during Senate negotiations. She shared the update on X while responding to concerns raised by Senator Thom Tillis. Tillis had warned that the provision could create a new hurdle for the bill.

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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 rejected that claim and said lawmakers are already adjusting the language. She said the changes will protect non-custodial developers without weakening enforcement against criminal activity. She added that developers who do not control user funds should not face liability.

The bill separates software developers from money transmitters. Lawmakers are refining how the bill defines “assistance” in illegal activity. This definition determines when a developer could face liability under U.S. law. Industry groups have raised concerns that unclear definitions could expose developers to enforcement action.

Lawmakers are also discussing safe harbor timelines for new protocol launches. The timeline gives developers time to experiment with software before it’s fully regulated. Lummis explained the timeline at the Bitcoin conference in Las Vegas. She said lawmakers plan to mark up the bill in May. She noted that the stablecoin and market structure terms are close to finalization.

The framework assigns oversight roles between regulators. The Commodity Futures Trading Commission will oversee digital commodities. The Securities and Exchange Commission will oversee digital securities. Lawmakers included this split in the CLARITY Act to remove overlap between the agencies.

Law Enforcement Pressure Shapes Final Safeguards

Law enforcement concerns have influenced final revisions to the bill. Senator Thom Tillis said lawmakers must address accountability risks in decentralized systems. He warned that some provisions could limit enforcement if left unchanged.

Lummis responded and said the issue will not delay progress. She explained that Congress is working to draft language that will go after criminals, but not developers. The idea, she said, is to prosecute individuals, not developers.

Acting Attorney General Todd Blanche supported this position at a digital assets summit in Wyoming by stating that prosecutors will not prosecute developers who are not involved in criminal activity.

Crypto firms and developer groups have raised concerns during the review process of the CLARITY Act. They said unclear rules could force developers to move operations outside the United States. They pointed to the past enforcement cases, such as the Samourai wallet co-founder William Hill, who was sentenced to four years for operating an unlicensed money-transmitting business.

These concerns have delayed earlier progress on the CLARITY Act. Lawmakers postponed a January markup after disagreements over stablecoin rules. They delayed another session in April to allow more discussions with banking stakeholders.

🚨NEW: At an event in DC this evening, Senator @berniemoreno was asked about the timeline for crypto market structure legislation.

“I think we’re going to get it done by the end of May,” he said.

The Ohio Republican warned last month that if the Clarity Act isn’t passed by May,… https://t.co/wKkIwF7tBT

— Eleanor Terrett (@EleanorTerrett) April 22, 2026

Coinbase also raised objections during the process. The company opposed restrictions tied to stablecoin rewards at one stage. Lawmakers later revised parts of that language after further talks.

CLARITY Act Talks Continue Toward Final Agreement

Lawmakers are still working to secure enough support for a Senate vote. Developer protections remain a key issue in the final draft of the bill. At the same time, ethics provisions have entered the negotiations. Senator Thom Tillis said he will vote against the bill without ethics language. Senator Ruben Gallego said bipartisan agreement is required before moving forward.

🇺🇸 SENATOR THOM TILLIS SAYS HE WILL NOT VOTE FOR THE SENATE CRYPTO BILL UNLESS IT INCLUDES ETHICS LANGUAGE RESTRICTING OFFICIALS’ USE OF DIGITAL ASSETS! pic.twitter.com/g1Ed0b498S

— Crypto News Hunters 🎯 (@CryptoNewsHntrs) April 29, 2026

Meanwhile, disagreements over stablecoin yield rules remain unresolved. Banking groups said yield-bearing stablecoins could reduce deposits in traditional banks. On the other hand, crypto firms said restrictions could limit user adoption and market activity.

The Senate proposal must also match the version passed by the House. Lawmakers approved that version in July last year with bipartisan support. Senate leaders are negotiating to finalize the remaining terms before scheduling a vote for the CLARITY Act.

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