Senator Cynthia Lummis rejected proposed Clarity Act revisions, saying they weaken protections for software developers without improving enforcement. Disputed amendments would remove the Lumm
Senate negotiations over the Clarity Act faced fresh disagreement after a revised proposal emerged, prompting Senator Cynthia Lummis to reject changes affecting software developer protections. According to journalist Eleanor Terrett, prosecutors' groups submitted the proposal while the Solana Policy Institute separately urged Senate leaders to schedule a floor vote before the August recess. The developments came as debate continued over criminal liability and digital asset regulation.
According to Eleanor Terrett, Lummis said the latest proposal did not result from any agreement with her. She added the measure failed to protect developers while also falling short of providing law enforcement with practical enforcement tools.
The proposal would remove the Lummis-Grassley amendment from the legislation. That amendment clarified software developers could face criminal liability only when they specifically intended to facilitate money laundering.
Meanwhile, Terrett reported the latest negotiations centered on prosecutors rather than police organizations. Notably, the National Sheriffs' Association, which previously opposed the Clarity Act, did not support the proposed revisions removing developer protections.
According to Politico reporter Jasper Goodman, two major prosecutors' organizations submitted proposed revisions on the disputed Clarity Act provision to the White House.
However, Crypto Council Executive Director Patrick Witt rejected claims that the proposal reflected discussions with the administration. He said Senator Catherine Cortez Masto's proposal was "not even close" to the White House position.
Terrett also reported that Treasury disputed claims the language reflected its input. Instead, Treasury said Washington lobbyists produced the proposal.
Separately, the Solana Policy Institute sent a July 28 letter to Senate Republican Leader John Thune and Senate Democratic Leader Chuck Schumer. Kristin Smith and Miller Whitehouse-Levine urged leadership to bring the Clarity Act to the Senate floor before the August recess.
The organization said the legislation would establish protections for software developers while providing regulatory certainty for institutions and consumers. It also highlighted developer growth on Solana during 2024 and argued the legislation would give regulators a framework tailored to blockchain-based financial systems while preserving consumer protections.
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