The Liquidity Policy Center expresses concerns about the CLARITY Act—urging measures to protect DeFi developers

CoinNetwork · 2026-03-28T00:15:31+00:00

The CLARITY Act has sparked a debate over decentralized finance (DeFi) provisions, with experts warning about restrictions on stablecoin yields and developer protections. Senator Lummis stated that relevant provisions will be amended to enhance safeguards, with the review date yet to be determined.

CoinNetwork

2026-03-28 00:15:31

Abstract generation in progress

As the Senate Banking Committee prepares to potentially review the CLARITY Act, a new debate is resurfacing around the terms affecting decentralized finance (DeFi). Jake Chervinsky, CEO of the Hyperliquid Policy Center, warned that while a key provision would prohibit stablecoin yield, the more critical issue is how to protect non-custodial software developers from being incorrectly classified as money transmitters. He argues that although the Blockchain Regulatory Certainty Act (Section 604) provides some protection, the wording in Chapter 3 could still impose KYC (Know Your Customer) obligations on developers, which he describes as “non-negotiable” for DeFi. Senator Cynthia Lummis responded that bipartisan negotiators are drafting amendments to Chapter 3 to establish strong protections. The date for the review has yet to be determined.

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