Crypto developers face legal risk as CLARITY Act stalls

Senator Lummis warns that without the CLARITY Act, U.S. crypto developers risk prosecution for publishing code, threatening blockchain innovation.

Senator Cynthia Lummis has repeatedly warned that if the CLARITY Act is not passed during the current Congress, American software developers—especially those in blockchain and crypto—could face prosecution simply for publishing code. The Act, which includes the Blockchain Regulatory Certainty Act, aims to clarify the difference between non-custodial software developers and entities that hold customer funds. This directly addresses concerns raised by recent prosecutions involving Tornado Cash and Samourai Wallet. Despite bipartisan progress in Senate committees, the bill faces significant obstacles, including calls for stricter regulations and opposition to its developer protections. Without clear legal safeguards, developers remain at risk, potentially stifling innovation in the U.S. digital asset sector.