Crypto lawyer Jake Chervinsky has raised concerns that parts of the CLARITY Act could still classify non-custodial developers as money transmitters. This could subject them to strict compliance requirements, including know-your-customer (KYC) obligations.

Despite provisions meant to protect developers, uncertainty remains around how regulators will interpret the rules. For many in the DeFi space, ensuring developers are not unfairly targeted is seen as critical to preserving innovation.