Solana Policy Institute Advocates for DeFi Developer Exemptions
- The Solana Policy Institute urged the SEC to differentiate between centralized exchanges and non-custodial DeFi software.
- A letter to the SEC stated that applying Rule 3b-16 to non-custodial protocols is inappropriate, as developers do not control user assets.
- The institute emphasized that treating open-source code like centralized platforms could hinder innovation and drive activity offshore.
- US Senators introduced the Blockchain Regulatory Certainty Act to protect developers from being classified as money transmitters.
- The Senate Agriculture Committee delayed its markup of the crypto market structure bill, which includes similar protections for developers.
The push for regulatory clarity comes amid heightened scrutiny of developer liability in cases like Tornado Cash, where legal proceedings have raised concerns about criminal liability for open-source code creators. This initiative aims to foster a more favorable environment for DeFi innovation within the US.
With ongoing discussions in Congress, there is a clear effort to establish protections for blockchain developers who do not handle user funds directly, reflecting a significant shift in regulatory focus.(Source)
