More than 60 crypto founders, led by the Solana Institute, are urging lawmakers to preserve developer protections as the CLARITY Act moves toward a Senate vote.
Crypto News
A US Senate floor vote on the CLARITY Act could come as early as this summer. The bill cleared the Senate Banking Committee in May 2026 and was placed on the Senate Legislative Calendar shortly after. That timing has pushed a debate over developer protections to the front of the legislative agenda, with industry leaders moving quickly to shape what the final text says.
Kristin Smith, CEO of the Solana Institute, posted on X to argue that the current window is critical. She described the bill as having a real chance of passing the Senate and said the outcome for open-source developers would depend on what lawmakers decide before it reaches the floor. More than 60 crypto executives and founders signed an open letter backing her position, including Solana (SOL) co-founder Anatoly Yakovenko.
Source: Kristin Smith
Why Developers Are Not Brokers
The open letter's core argument is a technical one. Developers who publish open-source blockchain software do not hold user funds, initiate transactions, or make decisions on behalf of users. Smith said that treating validators, non-custodial wallet providers, and open-source coders as financial intermediaries would misclassify their actual role. Applying broker or custodian obligations to these actors, she argued, would place compliance burdens on people who have no direct control over financial outcomes.
Smith pointed to the Blockchain Regulatory Certainty Act (BRCA) as the right legislative model. Senators Cynthia Lummis and Ron Wyden introduced the bipartisan bill in January 2026. The BRCA would bar regulators from classifying noncontrolling software developers and blockchain infrastructure providers as money transmitters on the basis of publishing code alone. It covers only those who do not have custody of customer assets or direct transactions on behalf of users.
The push from industry lines up with a position taken by a sitting SEC commissioner. Hester Peirce spoke at the IC3 Blockchain Camp at Princeton University during the week of June 2 and said that publishing open-source blockchain code is generally a protected activity under the First Amendment. She added that developers should not carry the regulatory weight of financial intermediaries simply because third parties choose to use what they have built.
SEC Chair Paul Atkins has separately committed to ending what he called the agency's "regulation through enforcement" posture toward digital assets. A version of the CLARITY Act that retains strong developer protections would give that policy shift a statutory foundation. It would establish in law where the line sits between building software and operating a regulated financial service.
The stakes extend beyond any single company or protocol. Open-source blockchain infrastructure underpins a wide range of products across the industry, and the CLARITY Act's definition of who qualifies as a regulated actor will set a precedent that applies broadly. Smith framed the Senate's decision on developer protections as one of the most consequential choices lawmakers will make on digital asset policy this year.
Related Article: The CLARITY Act Is Close: What Happens if Crypto’s Biggest US Bill Passes?
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