Opinion If America aims to be at the forefront of cryptocurrency, it must ensure the protection of its innovators and developers.
Despite the Clarity Act nearing completion, a crucial provision for developers remains at risk, according to Smith.
By Kristin Smith|Edited by Betsy Farber Jun 15, 2026, 2:25 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on
(Richard Drury/Getty Images)Recently, prominent founders, CEOs, and investors in the cryptocurrency sector signed a joint letter to Senate leaders, urging them not to dilute the Clarity Act's protections for software developers. Despite being competitors vying for talent and resources, they recognize the importance of this issue. If developer protections are removed from the legislation, the U.S. risks losing its innovators to other countries and jeopardizing its leadership in the future of finance.
Congress is closer than ever to establishing a genuine regulatory framework for digital assets. The Senate Banking Committee has advanced the Clarity Act with bipartisan support, and it is now set to be voted on by the full Senate.
However, a specific provision is in jeopardy. The Blockchain Regulatory Certainty Act (BRCA) serves as a fundamental element of the proposed legislation. It clarifies that individuals who create open-source software, operate nodes, or assist with transaction validation, without taking custody of any funds, are not classified as money transmitters under federal law.
The entire Clarity Act relies on this assurance; without it, there would be no market for digital assets to regulate if developers cannot afford to operate in the U.S. This provision has remained intact through committee discussions, despite attempts to amend it, and must be preserved in its entirety through the final vote.
This is significant for those who might never read the legislation. The developers, from Solana core contributors to DeFi protocol creators, produce software that anyone globally can access and utilize. They do not manage funds, nor can they freeze accounts or transfer money, as they never handle it. Equating software developers to bank tellers is as illogical as referring to an email app engineer as a postal worker. The Treasury's 2019 FinCEN guidance acknowledged that merely providing software or tools for money transmitters does not automatically categorize someone as a money transmitter. The BRCA aligns the criminal code with this understanding.
Unclear laws lead to regulators and prosecutors filling the void. The Treasury has taken action against developers who created software but did not hold customer assets. The conviction of Tornado Cash developer Roman Storm for allegedly operating an unlicensed money transmitting business exemplifies this troubling trend and raises concerns for those invested in American innovation. Such cases are already driving developers abroad.
Statistics support this concern. The U.S. share of global open-source crypto developers has decreased from 38% in 2015 to approximately 19% in the most recent annual count. Each of these developers represents potential jobs, tax income, and advancements in technology that benefit society at large. America cannot maintain leadership in industries it forces overseas. We can keep this innovation within our borders, governed by American regulations, or watch it relocate to places like Singapore and Abu Dhabi, only to later question why we allowed it to happen.
Some express concerns that safeguarding developers might lead to leniency towards criminal activities. This is not the case. The BRCA does not legitimize money laundering, sanctions violations, fraud, trafficking, or terrorist financing; individuals who manage customer funds remain subject to existing anti-money laundering regulations. Clear definitions do not weaken enforcement; rather, they enhance it by distinguishing legitimate developers from those engaged in illicit activities that law enforcement should pursue.
The BRCA has consistently garnered bipartisan support. In the Senate, it is championed by Senators Cynthia Lummis (R-WY) and Ron Wyden (D-OR). In the House, Majority Whip Tom Emmer (R-MN) and Representative Ritchie Torres (D-NY) are co-leading the effort. Such consensus is unusual in Washington and underscores a fundamental truth: a nation that protects its creators is one that innovators will choose to remain in.
The Clarity Act presents a rare opportunity to replace unpredictable enforcement with stable, clear regulations. This is precisely why the protections for developers must not be compromised in the final stages. A bill that regulates exchanges and token issuers while leaving the foundational builders unprotected would undermine its own goals and cede the industry's future to other nations.
Years ago, I informed a doubtful Senate that cryptocurrency was here to stay. The Clarity Act represents the moment to affirm that. We must maintain the BRCA, protect our builders, and ensure that America remains a hub of innovation for the foreseeable future.
Clarity ActNote: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.
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In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk Research3 hours agoIn May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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