A coalition of 61 industry leaders, founders, and investors is urging U.S. Senate leadership to pass the CLARITY Act while preserving strong protections for software developers and other non-custodial participants in blockchain networks. The appeal follows Senate Banking Committee approval of the Blockchain Regulatory Certainty Act (BRCA), a measure aimed at clarifying the regulatory treatment of developers and service providers that do not take custody of customer funds.
Industry Coalition Presses for CLARITY Act
The signatories are calling on Senate leaders to advance the CLARITY Act with provisions that safeguard open-source development and decentralized infrastructure. Their message centers on ensuring that writing and publishing code, operating nodes, validating transactions, or providing non-custodial tools are not, by themselves, grounds for being regulated as financial intermediaries.
BRCA Advances With Developer Safeguards
The coalition’s push comes on the heels of the Senate Banking Committee’s approval of the BRCA, which seeks to provide legal certainty for blockchain developers and non-custodial service providers. In practice, the bill would clarify that entities and individuals who do not control user assets—such as wallet software providers, miners, validators, and node operators—are not to be treated as money transmitters or similar regulated financial institutions solely due to their technical roles.
Why Developer Protections Matter
Supporters argue that clear delineations for non-custodial activity are critical for U.S. competitiveness and innovation. Without explicit protections, open-source contributors and infrastructure providers can face regulatory ambiguity, higher compliance costs, and enforcement risk—factors that may push development activity offshore. Clear rules are intended to encourage responsible innovation while preserving avenues for consumer protection and market oversight where custody and financial intermediation actually occur.
What’s Next in the Senate
The coalition is urging Senate leadership to bring the CLARITY Act to the floor and align its developer protections with those advanced in the BRCA. The measures would still require full Senate consideration and potential reconciliation before becoming law.