US Lawmakers Propose Critical Amendment to CLARITY Act for Blockchain Developers
US lawmakers are set to consider a pivotal amendment to the CLARITY Act that could reshape blockchain developer protections ahead of Tuesday's crucial markup hearing. The proposed changes aim to shield certain blockchain developers from stringent money transmitter regulations.
Key Amendment DetailsThe House Financial Services Committee will review an amendment to the Digital Asset Market Clarity Act of 2025 during Tuesday's markup session. Committee Chair French Hill introduced the amendment focusing on"non-controlling blockchain developers" treatment under federal regulations. {"align":"center"}
CLARITY Act regulatory framework overview
Protection Scope
The amendment proposes that certain blockchain developers and service providers would not be classified as money transmitters, exempting them from related registration requirements. This provision draws directly from theBlockchain Regulatory Certainty Act, legislation championed by Representative Tom Emmer. Industry Response and Bipartisan Support
Eight major crypto advocacy groups, including the Blockchain Association, have actively lobbied for combining these legislative pieces. The industry coalition argues this merger creates comprehensive protection for DeFi developers operating non-custodial protocols. {"align":"center"}
Industry groups unite for developer protection
Representative Ritchie Torres, co-sponsor of both bills, has indicated support for the market structure legislation. However, Democratic opposition remains, with Representative Maxine Waters expressing concerns about legitimizing what she calls "corruption" in the crypto industry.
Stablecoin Legislation ProgressParallel to the CLARITY Act developments, the Senate prepares to vote on the GENIUS Act for payment stablecoin regulation. Senate Majority Leader John Thune has prioritized completing stablecoin legislation this week, indicating strong momentum for comprehensive crypto regulation. {"align":"center"}
2025 crypto regulatory landscape evolution . Coincup
Impact on DeFi EcosystemThe amendment's passage could significantly benefit decentralized finance protocols by providing legal clarity for developers building open-source blockchain infrastructure. This protection addresses longstanding concerns about regulatory uncertainty hampering innovation in the DeFi space.
Coinbase Chief Legal Officer Paul Grewal emphasized the importance of market structure legislation, stating that "sensible rules for stablecoins" combined with clear market structure frameworks are essential for "long-term stability and growth."
What's NextTuesday's markup hearing represents a critical juncture for US crypto regulation. If approved, the amended CLARITY Act would proceed to a full House vote, potentially establishing the first comprehensive digital asset regulatory framework in American law. {"align":"center"}
Congressional timeline for crypto legislation
The convergence of stablecoin and market structure legislation signals Congress's renewed commitment to creating regulatory clarity in the digital asset sector. For blockchain developers, the proposed protections could unlock unprecedented innovation opportunities while maintaining necessary consumer safeguards.
