Senator Smith took to X platform to stress that the CLARITY Act has a realistic chance of advancing in the Senate, making it critical to keep provisions that shield software developers. More than 60 crypto executives and founders—including Solana co-founder Anatoly Yakovenko—signed an open letter backing the measures.
Smith argued that open-source developers, validators, and wallet providers who do not offer custodial services neither control user assets nor execute transactions on their behalf, so they should not be labeled intermediaries or custodians.
This approach aligns with the Blockchain Regulatory Certainty Act, a bill designed to provide clear legal boundaries for software developers and blockchain infrastructure providers who do not hold customer assets or control transactions. Introduced in January by Senators Cynthia Lummis and Ron Wyden, the bipartisan proposal ensures that developers merely publishing open-source code are not automatically classified as money transmitters.
CLARITY Act Advances in Legislative Pipeline
The CLARITY Act cleared the Senate Banking Committee in May and now sits on the Senate Legislative Calendar. As summer progresses, speculation grows over a potential full Senate vote in the coming months. Industry observers are closely watching the timeline.
Smith’s remarks echo comments made last week by SEC Commissioner Hester Peirce. Speaking at the IC3 Blockchain Camp at Princeton University, Peirce stated that publishing open-source blockchain code could be protected speech under the First Amendment, and that using such code should not automatically designate developers as financial intermediaries.
SEC Chair Promises Shift in Enforcement Tactics
The SEC remains the primary regulator of US capital markets. Chair Paul Atkins has pledged to move away from the “regulation by enforcement” approach that previously unsettled the industry. The shifting regulatory landscape has intensified lobbying from blockchain leaders who argue that innovation depends on clear and fair rules.
Supporters warn that unchecked regulation could stifle US technological advancement and push blockchain talent abroad. Some policymakers, however, caution that too many carve-outs for developers could open doors to regulatory arbitrage and market abuse. Striking a balance between developer protection and consumer safety remains the key challenge.
All eyes are now on whether the Senate will hold a vote on the CLARITY Act before the summer recess. The outcome could set a major precedent for how the US regulates open-source activity in the crypto space.