Crypto Industry Pushes for CLARITY Act Update to Define Developer Roles in Blockchain

• Eight crypto firms support a law that protects developers who do not handle user funds.
• The new rule helps define clear roles for blockchain creators and money service businesses.
• Policy groups say the law keeps oversight strong while helping safe innovation grow.

Eight major U.S.-based crypto firms have announced support for new legislation to protect blockchain developers. These companies include Uniswap, Jump, Coin Center, and the Solana Policy Institute. Their backing centers on the Blockchain Regulatory Certainty Act (BRCA), which they want added to the CLARITY Act.

New Legal Clarity for Developers

The CLARITY Act introduces updated rules that clearly separate software developers from financial custodians. Under the new rules, non-custodial developers would not face the same regulatory burdens as money transmitters. This change addresses legal uncertainty that blockchain creators in the U.S. have faced for years.

Industry leaders argue that these legal updates allow developers to focus on building safer blockchain tools. At the same time, the law ensures that platforms handling user funds remain under proper oversight. By narrowing the definition of money transmission, the proposal makes room for innovation without ignoring regulatory responsibilities.

FinCEN Guidance Strengthens the Case

The push for the BRCA builds on guidance issued by the Financial Crimes Enforcement Network in 2019. That advisory noted that developers who do not handle funds should not be treated as money transmitters. The current legislative proposal seeks to enshrine that view in law, offering stronger legal protections to code developers.

Supporters say that clear legal boundaries between custodial and non-custodial roles are essential. Without these boundaries, developers risk being wrongly classified. The new law offers safety for those working on open-source tools or peer-to-peer networks who do not control assets.

Support From Policy Organizations

Groups like Coin Center and the DeFi Education Fund back the measure. They stress that the proposal does not weaken financial oversight. Instead, it defines how existing laws should apply to emerging technologies. The Blockchain Association and Paradigm also support the change, calling it a responsible step forward.

On June 5, the eight firms released a joint statement endorsing the proposal. They thanked lawmakers who helped draft the legislation. The list includes Chairmen Hill and Steil, Majority Whip Emmer, and Representative Torres. Their support helped advance the bill’s goals.

U.S. Looks to Lead in Blockchain

The CLARITY Act reforms show that lawmakers now pay closer attention to the needs of blockchain developers. These changes may improve the United States’ position in global blockchain innovation. The proposal also reflects wider recognition of the value of decentralized, non-custodial tools.