Key facts
- White House officials met with law enforcement to discuss the CLARITY Act.
- Discussions focused on illicit finance and developer protections.
- Solana Institute CEO Kristin Smith is advocating for the CLARITY Act to include robust protections for open-source developers.
- Smith argues that developers and infrastructure providers should not be regulated as financial intermediaries.
- The CLARITY Act has advanced through the Senate Banking Committee and awaits a potential floor vote.
White House officials convened with law enforcement organizations to discuss the CLARITY Act, focusing on its provisions related to illicit finance and the protection of open-source developers. The meetings are part of an ongoing effort to build support for the legislation ahead of a potential Senate vote.
Solana Institute CEO Kristin Smith is actively urging the U.S. Senate to pass the CLARITY Act with its developer protections intact. She argues that open-source developers and blockchain infrastructure providers should not be subject to regulation as financial intermediaries. Smith highlighted that over 60 crypto industry leaders, including Solana co-founder Anatoly Yakovenko, have signed an open letter supporting these protections. She emphasized that these developers do not control user funds or execute transactions, distinguishing them from brokers or custodians.
Smith referenced the Blockchain Regulatory Certainty Act (BRCA), introduced by Senators Cynthia Lummis and Ron Wyden, which aims to provide legal clarity for developers who do not custody assets or control transactions. The CLARITY Act has already passed the Senate Banking Committee and is now on the Senate Legislative Calendar, indicating a possible floor vote this summer.
These calls for developer protections echo sentiments previously expressed by SEC Commissioner Hester Peirce, who stated that publishing open-source blockchain code is a protected activity under the First Amendment and that developers should not be penalized for others' use of their software.