The CEO of Solana Institute has urged the US Senate to pass the CLARITY Act, emphasizing the need to protect blockchain developers and infrastructure providers from being regulated as financial intermediaries. Kristin Smith highlighted that software developers, validators, and non-custodial wallet providers do not control user funds or execute transactions, and therefore should not be classified as brokers or custodians under the proposed legislation.
Smith’s appeal coincides with a coordinated effort by more than 60 crypto industry leaders, including Solana co-founder Anatoly Yakovenko, who signed an open letter advocating for strong developer protections within the CLARITY Act. The bill has already cleared the Senate Banking Committee and is now positioned for a potential floor vote, signaling tangible progress toward regulatory clarity.
The CLARITY Act aims to refine the regulatory framework for the crypto market by distinguishing between actors who handle assets directly and those who simply provide open-source software or blockchain infrastructure. This distinction is reinforced by the companion Blockchain Regulatory Certainty Act (BRCA), introduced earlier by Senators Cynthia Lummis and Ron Wyden. The BRCA specifically seeks to exempt open-source developers from classification as “money transmitters” solely based on their publication of blockchain code.
Regulatory voices such as SEC Commissioner Hester Peirce have supported similar views, arguing that publishing open-source blockchain software is a form of protected speech under the First Amendment. Peirce criticized attempts to label developers as financial intermediaries merely because third parties use their software, stressing that this approach risks stifling innovation.
Under the leadership of Chair Paul Atkins, the SEC has moved away from aggressive enforcement tactics toward clearer, rules-based regulation. This shift reflects growing recognition among policymakers and regulators of the unique technical roles that developers and blockchain infrastructure providers play in the crypto ecosystem.