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Developer Protections at Stake in Senate Crypto Bill
The Clarity Act's BRCA section would shield open-source developers from money transmitter rules. The US developer share has fallen from 38% to 19% since 2015.
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The Senate is closer to a vote on the Digital Asset Market Clarity Act. The fight over one section has drawn unusual unity from competing crypto firms.
Crypto executives and investors have jointly urged senators to preserve the Blockchain Regulatory Certainty Act within the bill. The BRCA establishes a legal distinction for developers who create open-source software or operate blockchain nodes without taking custody of customer funds. Under the provision, those developers would not be classified as money transmitters under federal law.
Supporters said the distinction matters because developers build the infrastructure that powers cryptocurrency and DeFi networks without handling user assets. Existing FinCEN guidance already recognizes that providing software tools does not automatically make someone a money transmitter. The BRCA would reinforce that principle and provide regulatory certainty.
High-profile enforcement actions have raised concerns across the industry. The prosecution of Tornado Cash developer Roman Storm has fueled fears that unclear rules could discourage innovation and push talent abroad.