Senator Cynthia Lummis defended protections for open-source crypto developers under the CLARITY Act, arguing that code authors should not be held responsible for how users deploy their software while rejecting JPMorgan CEO Jamie Dimon’s criticism of the bill.
Senator Cynthia Lummis has defended protections for open-source software developers in the CLARITY Act, arguing that developers who create code for cryptocurrencies such as Bitcoin and Ethereum should not be held liable for how end users utilise their software.
Speaking on CNBC, Lummis said developers typically have no control over or visibility into who ultimately uses their code. “Once they’ve written the code, they don’t know who the end user is,” she said.
The Wyoming senator also pushed back against criticism of the legislation from JPMorgan CEO Jamie Dimon, calling his assessment of the bill “absolutely wrong.” Lummis argued that Dimon either had not read the legislation or was misrepresenting its provisions. “He either hasn’t read the bill, or he wants to mislead people,” she said.
A key point of contention is the bill’s anti-money laundering (AML) framework. Lummis said the CLARITY Act contains more than 1,600 references to existing AML and Bank Secrecy Act (BSA) requirements and would continue applying those provisions to digital-asset activities.
Dimon has argued that crypto firms performing bank-like functions should be subject to the same AML, know-your-customer (KYC), and regulatory requirements as traditional banks. He has also warned that stablecoin issuers could operate under lighter regulations than banks.
The dispute expanded to Coinbase CEO Brian Armstrong after Dimon reportedly criticised him and vowed to oppose the legislation. Lummis described those remarks as “distasteful.”
The CLARITY Act cleared the Senate Banking Committee last month. Lawmakers are now working to merge SEC- and commodity-market-related provisions, alongside revisions linked to the GENIUS Act and ethics measures, before advancing a final package to the Senate floor.
