U.S. Clarity Act Provision Supports Cryptocurrency Developers
- The Clarity Act aims to protect software developers in the U.S., ensuring a viable digital asset market.
- A key provision of the Act survived committee markup, despite attempts to amend it.
- Developers, including those from Solana, do not handle customer funds and should not be treated as money transmitters.
- Treasury’s guidance from 2019 supports this view, stating that merely providing software does not equate to being a money transmitter.
- The conviction of Tornado Cash developer Roman Storm highlights regulatory risks for U.S.-based developers.
The Clarity Act’s provisions are crucial for maintaining innovation in the U.S., as unclear laws can drive developers abroad due to regulatory fears. Protecting those who build decentralized finance (DeFi) protocols is essential for a thriving digital economy.
The survival of the Clarity Act provision is vital, as it reinforces the notion that software developers should not face penalties for their work on open-source projects like DeFi. This clarity may help keep American innovation at home.
