Being a builder or developer in crypto’s decentralised finance corner could be likened to walking a legal tightrope in the fog.
But a new bill in Congress is looking to add a bit more “clarity.”
A freshly revised version of the 247-page CLARITY Act includes new language that could offer long-sought legal protection for crypto developers, wallet makers, and infrastructure providers.
The bill is sponsored by House Republicans, including French Hill, Dusty Johnson, and Majority Whip Tom Emmer.
Its latest amendment, known as an Amendment in the Nature of a Substitute, adds a key provision.
The clause specifies that “non-controlling” developers, encompassing those who write or publish code, provide non-custodial wallets, or maintain blockchain infrastructure, “shall not be treated as a money transmitter” solely on that basis.
That distinction may soon be written into law for the first time and would be a major boon for DeFi builders.
In recent years, developers behind projects like Tornado Cash and Samourai Wallet have faced criminal charges for allegedly operating unlicensed money transmitting businesses, despite not holding customer funds.