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Solana Policy Institute President Kristin Smith is urging the Senate to keep protections for non-controlling blockchain developers in the CLARITY Act as the crypto market structure bill moves toward possible Senate floor action.
Smith said the bill’s path through the Senate will matter for developers who build public blockchains. She argued that weak protections could push that work offshore. Her June 9 post came as crypto firms and trade groups pressed Senate leaders to move the bill forward.
Section 604 Shields Non-Controlling Developers
The Senate version of H.R. 3633 includes language on non-controlling blockchain developers and a separate Section 604, the Blockchain Regulatory Certainty Act.
The text says a non-controlling developer or provider would not be treated as a money transmitter solely for publishing software, providing self-custody tools or maintaining distributed ledger infrastructure.
That protection matters to open-source teams, validators and non-custodial wallet providers because they may support networks without holding customer assets or executing trades for users.
Builders Are Separated From Exchanges and Custodians
Smith argued that open-source builders should not be treated the same way as brokers, custodians or exchanges. The distinction is central to the developer shield.
Builders may publish code or maintain infrastructure without controlling user funds, while regulated intermediaries handle custody, trading or customer transactions. For Solana’s policy arm, the issue is whether the final bill keeps a clear line between publishing software and acting as a financial intermediary.
15-9 Vote Sends CLARITY Toward Senate Floor
The CLARITY Act advanced from the Senate Banking Committee on May 14 in a 15-9 vote. The bill now faces a Senate floor process shaped by disputes over anti-money-laundering rules, stablecoin rewards and political conflicts tied to crypto ventures.
The legislation is meant to draw boundaries between the SEC and CFTC and define when digital assets are treated as securities, commodities or another category.
200 Firms Press Senate on Developer Language
More than 200 crypto companies and organizations have urged Senate leaders to bring the bill to a vote. More than 60 executives and founders have separately pressed lawmakers to keep the developer language intact.
The developer section also preserves criminal liability for people acting with intent to transfer funds tied to criminal activity or unlawful conduct. That carveout is likely to remain important as lawmakers weigh industry demands against illicit-finance concerns.
The immediate fight is not only whether CLARITY passes. It is whether the final version keeps protections for open-source developers while preserving enforcement tools for unlawful activity.
