Cynthia Lummis

Sen. Cynthia Lummis (R-Wyo.) strongly endorsed the Clarity Act on Tuesday, noting that decentralized finance developers will face far less regulatory uncertainty after the bill becomes law.

DeFi Industry Will Have ‘Safe Harbor’

In an X post, Lummis dubbed the Clarity Act as the “best thing that could happen to the DeFi community.”

“Developers, validators, and node operators will finally have a safe harbor and we can ensure American innovation can stay right here on U.S. soil,” the senior lawmaker argued.

The House-passed version of the bill states that a person is not subject to the bill's regulatory requirements solely because they engage in DeFi-related activities, including operating liquidity pools or decentralized messaging systems for spot trading.

Bone Of Contention

The legislation hit an impasse after Coinbase, the largest cryptocurrency-native company on Wall Street, withdrew its support over provisions relating to stablecoin yields.

Lummis warned last week that blocking the bill would mean waiting until 2030 for another chance at cryptocurrency legislation.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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