On July 15, the Blockchain Association revealed that they have approached the U.S. Senate to raise its demand to provide protections for software developers in the Digital Asset Market Clarity Act (CLARITY ACT).
1/ America leads when builders are free to build.
Software developers who do not custody or control customer funds or transactions should not be treated as financial intermediaries simply because they write or publish code.
Developer protections are key to Clarity. 🧵 PIC.TWITTER.COM/EHPU12I5ZB
— Blockchain Association (@BlockchainAssn) JULY 15, 2026
The Blockchain Association is calling on the U.S. Senate to preserve important protections for software developers in the Digital Asset Market Clarity Act. The group raised concerns about regulations, saying that without protections, America could lose its dominance in blockchain-based innovation as developers and investment might move out of the country.
The Blockchain Association post stated that “Without this clarity, American developers face the possibility of financial-intermediary liability for software they do not control and transactions they do not execute. That uncertainty threatens open-source development, responsible innovation, and America’s ability to compete.”
American Risks Losing Builders Without Clarity: Blockchain Association
In the long thread posted on X, the Blockchain Association clearly said that “America leads when builders are free to build.” The organization mentioned that software developers who do not have custody or control of customer funds or transactions should not be treated as financial intermediaries, just because they are writing and publishing code.
The Blockchain Association has made protecting developers a top priority for years in the push for clear digital asset rules. According to the organization, just because developers are developing open-source software, it does not mean they are holding or transmitting customer assets. They have worked directly with Congress, lawmakers from both parties, developers, and industry allies throughout the market structure process to secure these protections.
In the post, the Blockchain Association revealed that it is actively mobilizing members, developers, and technical leaders to contact their senators. They are also meeting directly with Senate offices to stress that the Clarity Act must keep Section 604, the Blockchain Regulatory Certainty Act (BRCA), exactly as it passed out of the Senate Banking Committee.
“We have taken that case directly to Congress—working with lawmakers across the aisle, coordinating with developers and industry allies, and advocating throughout the market structure process to preserve meaningful protections for non-custodial development,” stated in the post.
The BRCA is a bipartisan U.S. legislation to ensure that developers and infrastructure providers are not classified as money transmitters under the Bank Secrecy Act (BSA) for creating or publishing software when they do not handle user assets. This protection is supporting responsible innovation without creating new risks.
The main part of this discussion is that these regulations do not provide protection for criminal activities. Law enforcement can still pursue fraud, sanctions evasion, illegal money transmission, and anyone who knowingly participates in or helps criminal conduct.
“If the United States makes writing software a source of unpredictable criminal liability, talent, investment, and new projects will move to jurisdictions with clearer rules. America should be attracting the world’s best builders—not pushing them offshore. ,” stated in the post.
Blockchain Sector Expects Clarity Under New Regulatory Framework
The Clarity Act is expected to create a clear regulatory framework for digital assets. This regulatory framework will divide oversight between agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). By dividing authorities between these two agencies, the regulatory framework will establish rules for digital commodities, stablecoins, and more.
In the recent markup session, the bill advanced through the Senate Banking Committee with bipartisan support but faces ongoing negotiations ahead of a potential floor vote this month before the August recess.
Section 604 (BRCA) is the most important rule for blockchain developers, as it codifies protections long sought by groups like Coin Center and other industry leaders to prevent overreach that could treat non-custodial developers as money transmitters under laws.
Last month, U.S. Financial Regulators proposed a new rule that would require blockchain-based stablecoin issuers to implement a Customer Identification Program (CIP), which is a similar program that is required for the traditional banking sector.
