Crypto Industry Urges Protections for Blockchain Developers
One hundred twelve digital asset builders, investors and advocates, led by the DeFi Education Fund, have urged Congress to enact federal protections for blockchain developers and non-custodial service providers in the Digital Asset Market Clarity Act (CLARITY Act). The coalition calls for treating blockchain as neutral infrastructure, preserving open-source software safeguards, and shielding developers from regulation for creating or maintaining networks. They demand immunity from money-transmitter classification and preemption of conflicting state laws.
The CLARITY Act, passed by the House 294-134, would assign digital-asset oversight mainly to the CFTC, while the SEC retains fraud enforcement over certain stablecoins. It exempts defined assets from the Howey test, establishes Qualified Digital Asset Custodians, and clarifies regulatory jurisdiction. Advocates want the Senate to enhance protections for blockchain developers before finalizing the bill. A parallel Senate draft, the Responsible Financial Innovation Act, also aims to define ancillary assets, streamline SEC registration and adapt regulations to token technology.
Bullish
Clear federal protections for blockchain developers and non-custodial providers could foster innovation by reducing legal uncertainty. This move aligns with past regulatory clarifications—such as Japan’s early crypto framework—that boosted domestic market growth. Assigning primary oversight to the CFTC and preempting conflicting state laws may attract more development activity to the US. In the short term, the direct price impact may be limited, but long-term effects include increased institutional and developer participation, signaling a bullish outlook for digital-asset markets.