{"id":78108,"date":"2026-03-28T00:01:43","date_gmt":"2026-03-28T00:01:43","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=78108"},"modified":"2026-03-28T00:01:43","modified_gmt":"2026-03-28T00:01:43","slug":"hyperliquid-policy-centers-concerns-over-clarity-act-urges-fixes-to-protect-defi-developers","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=78108","title":{"rendered":"Hyperliquid Policy Center\u2019s Concerns Over CLARITY Act\u2013 Urges Fixes To Protect DeFi Developers"},"content":{"rendered":"
\n

A fresh round of disagreement over the CLARITY Act has revealed ongoing concerns originating from the Hyperliquid Policy Center (HPC), as lawmakers prepare for a potential Senate Banking Committee markup.\u00a0<\/p>\n

The debate intensified after a potential deal surfaced earlier in the week, suggesting the bill would broadly bar platforms from offering yield on stablecoins or assets that operate like bank deposits. That provision, along with other unresolved clauses, has prompted a flurry of comments from industry figures and lawmakers.<\/p>\n

Hyperliquid Policy Center CEO\u2019s Warning<\/h2>\n

Jake Chervinsky, CEO of the recently launched Hyperliquid Policy Center, took to social media platform X (previously Twitter) to push back on how the debate has been framed.\u00a0<\/p>\n

While acknowledging that stablecoin yield is a headline-grabbing issue, Chervinsky warned <\/a>it is not the only sticking point. His primary concern centers on protecting non\u2011custodial software developers from being mischaracterized as money transmitters.\u00a0<\/p>\n

\u201cThat\u2019s non\u2011negotiable for DeFi,\u201d he wrote, arguing that developers must not be subject to the same regulatory obligations as custodial firms if decentralized finance is to function. He urged fixes to elements of the bill that, in his view, would undermine those protections<\/a>.<\/p>\n

At the heart of Chervinsky\u2019s argument is the Blockchain Regulatory Certainty Act (BRCA), which appears as Section 604 in the last Senate Banking draft.\u00a0<\/p>\n

The BRCA explicitly clarifies that \u201cnon\u2011controlling developers and providers\u201d are not financial institutions required to meet know-your-customer (KYC) obligations under the Bank Secrecy Act.\u00a0<\/p>\n

But Chervinsky says that other portions of the CLARITY Act \u2014 specifically parts of Title 3 \u2014 still contain language that could subject many non\u2011custodial developers<\/a> to KYC duties despite the BRCA\u2019s protections.\u00a0<\/p>\n

\u201cThose sections must be fixed or the bill doesn\u2019t work for DeFi,\u201d he warned. \u201cIf the bill doesn\u2019t work for DeFi, it doesn\u2019t work at all.\u201d<\/p>\n

Senate Banking Markup Date Remains Unclear<\/h2>\n

Senator Cynthia Lummis, a leading GOP negotiator on the measure, responded directly to the social media post and sought to reassure stakeholders that bipartisan progress is near.\u00a0<\/p>\n

Lummis told <\/a>Chervinsky not to \u201cbelieve the FUD,\u201d stressing that negotiators have spent recent weeks drafting changes to Title 3 designed to make the bill \u201cthe strongest protection for DeFi and developers ever enacted.\u201d\u00a0<\/p>\n

The Hyperliquid Policy Center\u2019s CEO answered that both sides largely agree on the need to protect developers and noted that the public draft already contains meaningful safeguards in the BRCA <\/a>and in Sections 207 and 601. Still, he reiterated his concern about unresolved language in Title 3.<\/p>\n

All this unfolds while the timetable for a formal Senate Banking Committee markup remains unclear. The Agriculture Committee has already approved its portion of the legislation in January, but the banking panel has not yet scheduled a markup.\u00a0<\/p>\n

\"Hyperliquid\"<\/p>\n

At the time of writing, decentralized exchange Hyperliquid\u2019s native token, HYPE, was trading at roughly $38.5, down 1.6% in the previous 24 hours. Nonetheless, the token has made 33% increases in the monthly time frame, outperforming the largest cryptocurrencies during the same time period.\u00a0<\/p>\n

Featured image from OpenArt, chart from TradingView.com\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A fresh round of disagreement over the CLARITY Act has revealed ongoing concerns originating from the Hyperliquid Policy Center (HPC), as lawmakers prepare for a potential Senate Banking Committee markup.\u00a0 The debate intensified after a potential deal surfaced earlier in the week, suggesting the bill would broadly bar platforms from offering yield on stablecoins or […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-78108","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/78108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=78108"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/78108\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=78108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=78108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=78108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}