Lawmakers Shield Crypto Developers in New Market Bill

- New bill amendment protects software developers. - House committee to debate crypto market regulations. Prompted by advocacy group pressure, lawmakers updated the Digital Asset Market Clarity Act (CLARITY Act) to include protections for software developers. This addition, originating from the Blockchain Regulatory Certainty Act, clarifies that non-custodial crypto platforms and their developers are not money transmitters or operators of an "unlicensed money services business." On June 9, 2025, The Block reported that cryptocurrency advocacy groups applauded the updated provision, which aims to protect software developers. The Blockchain Regulatory Certainty Act specifies an important detail: if developers create non-custodial, peer-to-peer software and do not control customer funds, they do not fall under the same regulatory requirements as traditional financial institutions. Consequently, groups such as the DeFi Education Fund, Coin Center, and the Blockchain Association support this stance. The House Financial Services Committee will debate the CLARITY Act on Tuesday. The bill, which aims to establish a clear regulatory framework for digital assets, will divide oversight responsibilities between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Furthermore, provisions in the bill require digital asset firms to provide disclosures to customers and segregate customer funds from their own. An amendment in the nature of a substitute proposes to replace the entire bill text and will form the basis for the committee's forthcoming discussion. The CLARITY Act expands on the previously introduced Financial Innovation and Technology for the 21st Century (FIT21) Act. Specifically, the CLARITY Act includes provisions for a provisional registration regime applicable to digital commodity exchanges, brokers, and dealers. The bill also extends DeFi safe harbor measures, which exempt non-custodial protocol participants, such as developers and validators, from registration requirements. In addition, it addresses the segregation of customer funds and mandates consumer disclosures. According to Market Survey on June 9, as of 18:19 UTC, World Liberty Financial USD (USD1) was trading at $1, and its 24-hour trading volume had changed by 0.009%.