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Lummis reframes the concept of decentralized finance as a benefit rather than a flaw.
Senator Lummis said that decentralized finance is an “intriguing innovation,” not a regulatory loophole, indicating a notable shift in the approach of federal lawmakers toward non-custodial protocols. These remarks reinforce what many in the crypto industry have long argued: that independent, unregulated software should be treated differently from traditional financial intermediaries, and should not be forced to comply with frameworks designed for centralized institutions.
This position is highly significant in light of the current legislative context. The House of Representatives passed the Digital Asset Market Clarity Act in July 2025 by a bipartisan majority of 294 votes to 134, and it was then approved by the Senate Banking Committee by a majority of 15 votes to 9 on May 14, 2026. Senator Lummis is now seeking to bring the bill to a full Senate vote as the legislative session approaches.