Lummis says Clarity Act would shield crypto software developers from money transmission liability

The senator said the bill draws a legal line between writing code and money transmission, a distinction she argued could shape how crypto builders operate for years.

Summary

Sen. Lummis said the Clarity Act would make clear that writing code is not money transmission, framing the proposal as a significant legal distinction for crypto software developers. Under the bill, developers who build crypto software would not be held legally responsible for how other people use it, a change that could matter broadly for builders working on blockchain applications and related tools.

Terms & Concepts
  • money transmission: Moving funds on behalf of others
  • crypto software developers: People who build blockchain-based applications and tools
  • Clarity Act: A proposed bill addressing crypto legal treatment