Senator Cynthia Lummis is warning that Washington is running out of time to protect crypto developers. She says that if Congress does not pass the CLARITY Act, authorities will once again prosecute U.S. software developers “just for publishing code.” Her message comes as the Senate prepares for key votes on the bill after committee approvals earlier this year.
The CLARITY Act bundles the Blockchain Regulatory Certainty Act to draw a line between people who write non‑custodial software and firms that actually hold customer funds. Supporters warn that without this distinction, regulators may treat open‑source developers as money transmitters even when those developers cannot move user assets themselves. Lummis argues that this “looming threat” has already hung over coders working on wallets, privacy tools, and DeFi front ends.
Tornado Cash And Samourai Cases Loom Over Debate
Lummis and other supporters cite recent prosecutions as cases they wish to prevent from happening again. Federal prosecutors have accused the creators of Tornado Cash and Samourai Wallet of violating money transportation regulations for software they produced, even though the software was non-custodial. Without legislative protection, comparable cases could come back at any time, enforcement priorities shift, Lummis said.
The bill’s critics worry that its developer shield could be too broad and might let bad actors hide behind open‑source labels. Lummis counters that the language is “narrower than opponents claim” and does not protect anyone who actually controls funds, runs an exchange, or launders money. Instead, she says it only answers one question: whether “writing and shipping software, by itself,” should turn someone into a regulated financial institution.
For developers, the stakes go beyond crypto markets and reach into basic questions of free speech and innovation. Lummis and co‑sponsors argue that treating code authors like money transmitters “demonstrates a lack of technological understanding” and risks chilling open‑source work in the United States. They say passing the CLARITY Act would finally align liability with actual control over assets, rather than with the act of publishing software.
But if the bill gets bogged down or toned down, Lummis says developers would continue to face shifting interpretations at agencies like the SEC and the Department of Justice. She is casting the next vote as a choice between clear regulations penned by Congress and the continuous use of enforcement actions that can vary from one administration to the next.
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