In a statement posted on X (formerly Twitter), Senator Lummis expressed her views, stating,
“I am deeply troubled by the Department of Justice’s hyper-aggressive argument that non-custodial software can constitute a money transmission service. This stance contradicts existing Treasury guidance, common sense, and violates the rule of law.”
I am deeply concerned by the Biden administration criminalizing core tenants of the Bitcoin network and decentralized finance.
My full statement. ⬇️ pic.twitter.com/M3CHcNTi3x
— Senator Cynthia Lummis (@SenLummis) May 1, 2024
Senator Lummis emphasized the importance of protecting individual rights in the crypto space, stating, “Arguments against self-custody software threaten the fundamental property rights that are core to being an American. I will do everything I can to fight for your rights to hold your own keys and run your own node.”
The senator’s remarks come in response to the DOJ’s assertion that money transfer laws now cover wallet developers who have no custody or control over users’ crypto assets.
Also Read: Japan Moves to Tighten Crypto Rules as Market Expansion Push Continues
Notably, the Justice Department’s recent legal actions target prominent figures in the crypto community, including the founders of Samourai Wallet, a privacy-focused Bitcoin wallet and mixer service. The Department accused Keonne Rodriguez and William Lonergan of conducting over $2 billion in “illegal transactions” and operating without a money transfer license. Rodriguez was recently arrested in Pennsylvania, while Lonergan was apprehended in Portugal.
Another notable case involves Roman Storm, the developer of Tornado Cash, a crypto mixer tool. Storm faces charges of money laundering and violating sanctions, allegations he vehemently denies. However, the Justice Department’s swift response to block Storm’s request for dismissal underscores the Department’s aggressive stance on regulating crypto-related activities.
These moves from the DOJ have attracted critical responses within the crypto community, particularly among those advocating for DeFi and the fundamental principles of the Bitcoin network. Notably, advocacy group DeFi Education Fund’s legal Chief, Amanda Tuminelli, criticized the Department’s Prosecution of Tornado Cash Developer and labelled it as a “disregard for privacy.”
Lummis backs developer protections in CLARITY Act
In June 2026, Lummis publicly defended the developer protections included in the Digital Asset Market Clarity Act, commonly known as the CLARITY Act.
She argued that software developers should not need extensive legal support simply to determine whether publishing code could expose them to prosecution. Lummis said the legislation would provide stronger protections for developers working on DeFi and other decentralized applications.
The bill includes provisions aimed at protecting certain non-custodial software developers, wallet providers and blockchain validators from automatically being treated like financial intermediaries when they do not control customer funds.
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