Lawmakers Shield Crypto Developers in New Market Bill
@Plank, this matter is related to deep technical knowledge and legislative impact on crypto developers and platforms, so I'm assigning it to you.
Key Event: Lawmakers have included protections for software developers in a new version of a digital asset market structure bill. This measure, supported by cryptocurrency advocacy groups, clarifies that non-custodial crypto platforms and developers are not classified as money transmitters or operators of an "unlicensed money services business." The update comes as the House Financial Services Committee prepares to debate the bill, which aims to establish a clear regulatory framework for digital assets, designating oversight roles to the SEC and CFTC. Additionally, the bill mandates disclosures from digital asset firms and the segregation of customer funds.
Editor-in-chief,
According to The Block on June 9, 2025, lawmakers have incorporated a measure to protect software developers into the newest version of a significant digital asset market structure bill. This addition, which has been applauded by cryptocurrency advocacy groups, clarifies that non-custodial crypto platforms and the developers who build them are not considered money transmitters or operators of an "unlicensed money services business". This key provision originated from the Blockchain Regulatory Certainty Act.
The House Financial Services Committee is scheduled to debate this larger crypto market bill, titled the Digital Asset Market Clarity Act (CLARITY Act), on Tuesday. The CLARITY Act aims to establish a distinct regulatory framework for cryptocurrencies, specifying the regulatory responsibilities of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Additionally, the bill mandates that digital asset firms provide disclosures to customers and segregate customer funds from their own. An amendment in the nature of a substitute, which proposes to replace the entire bill text, was filed ahead of the scheduled markup. This updated version of the CLARITY Act will form the basis for the committee's discussions.
The Blockchain Regulatory Certainty Act (BRCA) has received joint statements of support from several crypto advocacy groups, including the DeFi Education Fund, Coin Center, and the Blockchain Association, who urge its inclusion in broader market structure legislation. They emphasize that developers of non-custodial, peer-to-peer software are different from traditional financial institutions and should not be regulated as such if they do not control customer funds.
The CLARITY Act itself, introduced by House Financial Services and Agriculture Committees, builds upon the previously introduced Financial Innovation and Technology for the 21st Century (FIT21) Act. It seeks to divide oversight of digital assets between the SEC and the CFTC, with the CFTC having full control over spot markets trading digital commodities. The bill also includes provisions for a provisional registration regime for digital commodity exchanges, brokers, and dealers, and expands on DeFi safe harbor provisions, exempting non-custodial protocol participants like developers and validators from registration. The legislation also addresses the segregation of customer funds and requires disclosures to consumers. A hearing on the CLARITY Act (H.R. 3633) was held by the House Committee on Financial Services on June 5, 2025.
@Planck,
Focus your article on the recent addition to the Digital Asset Market Clarity Act (CLARITY Act), highlighting the protection measure for software developers originating from the Blockchain Regulatory Certainty Act. Clearly explain that this provision ensures non-custodial crypto platforms and their developers are not classified as money transmitters or operators of unlicensed money services businesses. Emphasize its significance by mentioning the strong support from cryptocurrency advocacy groups. Briefly outline the scheduled House Financial Services Committee debate on the CLARITY Act, its goal to clarify regulatory oversight between the SEC and CFTC, and the mandate for digital asset firms to segregate customer funds and provide disclosures. Avoid delving into redundant historical details and keep your narrative focused on the key event and its immediate implications.
- Superior
Lawmakers Shield Crypto Developers in New Market Bill
- New bill amendment protects software developers.
- House committee to debate crypto market regulations.
Lawmakers have updated the Digital Asset Market Clarity Act (CLARITY Act) to include protections for software developers, following advocacy group pressure. The addition, which originated from the Blockchain Regulatory Certainty Act, clarifies that non-custodial crypto platforms and their developers are not classified as 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 aimed at protecting software developers. The Blockchain Regulatory Certainty Act specifies that developers who create non-custodial, peer-to-peer software do not fall under the same regulatory requirements as traditional financial institutions if they do not control customer funds, a stance supported by groups such as the DeFi Education Fund, Coin Center, and the Blockchain Association.
The House Financial Services Committee is set to debate the CLARITY Act on Tuesday. The bill aims to establish a clear regulatory framework for digital assets, dividing oversight responsibilities between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 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 has been filed to replace the entire bill text, which 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. It includes provisions for a provisional registration regime for digital commodity exchanges, brokers, and dealers. The bill also extends DeFi safe harbor measures, exempting non-custodial protocol participants, such as developers and validators, from registration requirements. Additionally, it addresses the segregation of customer funds and mandates consumer disclosures.
As of June 9, 2025, 18:19 UTC, World Liberty Financial USD (USD1) is trading at $1, with a 0.009% change in 24-hour trading volume, according to Market Survey.