Why does Senator Cynthia Lummis support the CLARITY Act?

Senator Cynthia Lummis supports the Digital Asset Market Clarity Act because she says software developers should not face legal uncertainty for writing code. The bill's Section 604 would clarify that non-custodial developers are not money transmitters under federal law.

What does the CLARITY Act mean for crypto developers?

The Digital Asset Market Clarity Act would provide legal protections for developers who build software without controlling user funds. Under Section 604, activities such as writing open-source code, running a node or validating transactions would not automatically trigger money transmission obligations.

How is Roman Storm connected to the CLARITY Act debate?

Roman Storm, co-founder of Tornado Cash (CRYPTO:TORN), was convicted in August 2025 of conspiracy to operate an unlicensed money transmitting business. Supporters of the Digital Asset Market Clarity Act argue the case highlights the need for clearer legal protections for non-custodial software developers.

What does Section 604 of the CLARITY Act mean for crypto infrastructure providers?

Section 604 of the Digital Asset Market Clarity Act states that developers and infrastructure providers that do not custody or control customer assets are not money transmitters. The provision is based on guidance previously issued by the Financial Crimes Enforcement Network in 2019.

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CLARITY Act targets developer liability rules

Q: What are the next steps for the CLARITY Act?

The Digital Asset Market Clarity Act has passed the US House of Representatives and advanced through the Senate Banking Committee. The bill is now on the Senate Legislative Calendar and awaits a full Senate floor vote.

Written by Brie CarterPublished Jun 22, 2026, 5:20 AM

Senator Cynthia Lummis said the CLARITY Act would protect non-custodial crypto developers from money transmission charges.
The proposal follows the August 2025 conviction of Tornado Cash co-founder Roman Storm on one federal charge.
Section 604 of the bill would clarify that developers who do not control user funds are not money transmitters under federal law.

Senator Cynthia Lummis said the Digital Asset Market Clarity Act would protect crypto developers from prosecution for writing code if they do not custody or control customer funds.

The bill has already passed the US House of Representatives by a 294-134 vote in July 2025 and advanced through the Senate Banking Committee by a 15-9 vote in May 2026.

“Software developers should not need an army of lawyers to know if their code is legal. The Clarity Act ends that absurdity,” said Senator Cynthia Lummis.

The debate gained attention after Tornado Cash (CRYPTO:TORN) co-founder Roman Storm was convicted in August 2025 of conspiracy to operate an unlicensed money transmitting business, a charge carrying a maximum five-year prison sentence.

Section 604 of the CLARITY Act would codify existing guidance that developers and infrastructure providers that do not control user assets are not money transmitters under federal law, while supporters are urging the Senate to preserve the provision during final consideration. Following the announcement the Tornado Cash share price was unavailable as the protocol does not have a publicly traded equity.

Tornado Cash is an Ethereum (CRYPTO:ETH)-based privacy protocol that allows users to obscure transaction links, and Storm's defence argued that developers should not be held responsible for how independent users interact with self-executing software.

The proposal also follows regulatory actions against other crypto projects, including a 2024 Wells Notice issued to Uniswap Labs and enforcement action by the Commodity Futures Trading Commission against Ooki DAO contributors, while more than 60 industry executives have signed a letter supporting the bill's developer protections.

At the time of reporting, Tornado Cash price was $5.30.

CLARITY Act targets developer liability rules

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