CLARITY Bill Falls Back into Deadlock: Regulatory Authorities and DeFi Developers' Positions Clash

SignatureVerifier · 2026-01-17T10:20:10+00:00

The US CLARITY Act faces challenges as the Senate Judiciary Committee expresses concerns about the exemption for DeFi developers, believing it could facilitate financial crimes. Meanwhile, the Banking Committee argues that the exemption is important for protecting developers. After a certain exchange withdrew support, the White House pressured it to return to negotiations, making the bill's prospects more uncertain and difficult to unify opinions among all parties.

SignatureVerifier

2026-01-17 10:20:10

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【Crypto World】The advancement of the US CLARITY Act faces another setback. Senate Judiciary Committee Chairman Chuck Grassley and Dick Durbin publicly stated that the exemption clauses in the bill, which allow non-custodial DeFi developers to obtain remittance licenses, could weaken the Department of Justice’s ability to combat financial crimes. Citing the “Tornado Cash” case as a warning, they expressed concerns that such exemptions could become loopholes for money laundering.

However, the Senate Banking Committee holds a different view. The committee believes these exemption clauses are crucial for protecting software developers from excessive regulation and are necessary to balance innovation and compliance.

Adding to the complexity, a major exchange suddenly withdrew its support for the bill, disrupting the original coalition of interests. Reports indicate that the White House subsequently pressured the exchange to return to the negotiation table. These series of developments make the prospects for the CLARITY Act even more uncertain, and the disagreements among parties regarding the DeFi regulatory framework seem difficult to reconcile.

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LiquidationWizard

· 4h ago

This is a classic case of conflicting interests—on one hand, claiming to crack down on crime, and on the other, wanting to protect developers. No one can truly satisfy both.

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AirdropBlackHole

· 4h ago

Coming back with the same old story? Regulatory agencies are fighting each other, exchanges are just going with the flow, and DeFi developers still have to be caught in the middle. This bill will probably be delayed another six months... How long will it take for the Tornado Cash baggage to be finally let go?

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ChainSpy

· 4h ago

This bill is really a farce, worrying about money laundering on one hand and protecting innovation on the other, and in the end, exchanges have to come to the rescue... Truly remarkable.

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MevHunter

· 5h ago

Tornado Cash meme is back... I really don't know whether to be against the money laundering loophole or to feel sorry for the developers, both sides have their reasons, what to do The major exchange's move is brilliant, the White House pressures to return to the negotiation table? It feels like playing Monopoly—whoever holds the chips gets to speak DeFi regulation always has this tone, how can innovation and compliance be achieved overnight

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