Kristin Smith Urges U.S. Senate To Pass CLARITY Act With Developer Protections Intact

Solana Institute CEO Kristin Smith urged the U.S. Senate to pass the CLARITY crypto market structure bill with developer protections intact, arguing that open-source software maintainers and blockchain infrastructure providers should not be treated as financial intermediaries.

“More than 60 of the most prominent CEOs and founders in the cryptocurrency industry sent a letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer on June 9, calling on the full Senate to pass the Digital Asset Market Clarity Act with its blockchain developer protections intact — a provision the signatories described as a non-negotiable condition of their support”

Bitcoin Magazine

In a thread on X, Smith said the measure “has a real shot at passing the Senate,” and she tied that push to preserving protections for software developers as the bill advances.

Bitcoin Magazine

Smith said more than 60 crypto CEOs and founders, including Solana co-founder Anatoly Yakovenko, signed an open letter backing the protections, and she argued that open-source developers, validators and non-custodial wallet providers do not custody user funds or execute transactions.

She pointed to the Blockchain Regulatory Certainty Act (BRCA), introduced in January by Senators Cynthia Lummis and Ron Wyden, as a bipartisan proposal meant to provide legal certainty for noncontrolling software developers and blockchain infrastructure providers who do not custody assets or control transactions.

The CLARITY Act cleared the Senate Banking Committee in May and was placed on the Senate Legislative Calendar, setting the stage for a potential floor vote later this summer.

Smith’s argument echoed US Securities and Exchange Commission Commissioner Hester Peirce, who said at the IC3 Blockchain Camp at Princeton University that publishing open-source blockchain code is protected speech and should not automatically render developers money transmitters or securities intermediaries.

Peirce told the audience that “many blockchain projects involve publishing open-source software, which is generally a protected activity under the First Amendment.”

bloomingbit

The crypto debate also drew attention to the SEC’s posture shift, with the coverage describing a move away from a “regulation through enforcement” posture under current leadership.

In parallel, the CLARITY Act’s timeline was described as advancing through the Senate Banking Committee, which cleared the legislation in May and placed it on the Senate Legislative Calendar on June 1, 2026.

A June 9 letter described the BRCA as a non-negotiable condition of support for the broader market structure bill, focusing on Section 604 of the Clarity Act to shield non-controlling software developers from Bank Secrecy Act obligations and federal money transmission prosecution.

The push for developer protections is tied to a narrowing legislative window, with coverage saying more than 200 crypto companies and organizations, led by Stand With Crypto, urged Senate leaders to bring the CLARITY Act to a full Senate vote without delay.

“Solana Institute CEO says CLARITY Act must shield open-source developers Kristin Smith urged the Senate to preserve developer protections in the CLARITY Act, arguing open-source builders should not be regulated as financial intermediaries”

Cointelegraph

Galaxy Research estimated the bill has a 60-75% chance of becoming law in 2026 and projected a possible presidential signature during the week of August 3, while Senator Cynthia Lummis cautioned after the committee vote: “Nobody is popping the champagne quite yet”.

Analysts also warned that the bill faces election pressures and policy disputes, with one assessment saying unresolved disagreements surrounding stablecoin yield provisions and the approach of midterm elections could complicate efforts to secure final approval.

The legislative path described in the coverage requires merging the Senate Banking Committee version with the Senate Agriculture Committee’s jurisdiction framework before a full Senate floor vote, where the bill requires 60 votes to clear the filibuster threshold.

If enacted with the BRCA protections, the coverage says the provision would codify that developers and infrastructure providers who do not custody or control user funds are not money transmitters subject to Bank Secrecy Act registration or criminal prosecution under 18 U.S.C. § 1960.