Solana Institute CEO Kristin Smith has urged the U.S. Senate to preserve developer protections in the CLARITY Act as more than 200 crypto firms and organizations push for the bill to advance before August.
Summary
- Kristin Smith urged the Senate to keep developer protections in the CLARITY Act as the bill moves closer to a potential vote.
- More than 60 crypto leaders and over 200 industry groups have backed efforts to advance the legislation before August.
- Analysts at Galaxy Digital and JPMorgan warn the bill faces a narrowing path to passage amid election pressures and policy disputes.
Commenting on the legislation’s progress, Smith said in a June 9 thread on X that the bill has a realistic chance of advancing through the Senate, making it important for lawmakers to preserve protections for open-source developers and blockchain infrastructure providers.
Citing an industry-backed letter, Smith said more than 60 crypto founders and executives, including Solana co-founder Anatoly Yakovenko, urged senators to maintain strong protections for software developers within the bill.
She argued that open-source developers, validators, and non-custodial wallet providers do not take custody of user assets or execute transactions on behalf of customers and therefore should not face the same regulatory treatment as brokers or custodians.
Her remarks come as support for the CLARITY Act grows across the digital asset industry.
According to crypto advocacy group Stand With Crypto, more than 200 crypto companies and organizations recently sent a separate letter to the Senate urging lawmakers to bring the legislation to a floor vote without delay. The coalition said the bill had already undergone months of bipartisan negotiations and should now proceed to formal debate.
Smith points to separate bill protecting developers
Drawing attention to related legislation, Smith referenced the Blockchain Regulatory Certainty Act, a bipartisan proposal introduced in January by Senators Cynthia Lummis and Ron Wyden.
According to Smith, the measure would provide legal certainty for software developers and blockchain infrastructure providers that do not control customer funds or transactions.
Legislative text released alongside the proposal states that the bill seeks to prevent non-custodial developers from being classified as money transmitters solely because they publish software code or maintain network infrastructure.
Smith argued that similar protections should remain part of the CLARITY Act as Senate lawmakers continue reviewing the market structure framework.
Momentum around the legislation has increased in recent weeks. As reported by crypto.news, the House Ways and Means Committee is simultaneously examining seven separate crypto tax proposals covering stablecoins, staking, mining, lending, charitable donations, wash-sale rules, and disclosure requirements while Senate negotiators continue work on market structure legislation.
Industry groups warn the legislative window is narrowing
Pressure to advance the CLARITY Act has also intensified as analysts question how much time remains on the congressional calendar.
Last week, Galaxy Digital head of research Alex Thorn lowered his estimate of the bill becoming law in 2026 to 60%, down from 75% in May. According to Thorn, the legislation must continue moving through the Senate before lawmakers leave Washington for the August recess because election-related activity could limit opportunities for major crypto legislation later in the year.
A separate assessment from JPMorgan, led by managing director Nikolaos Panigirtzoglou, reached a similar conclusion. The bank said unresolved disagreements surrounding stablecoin yield provisions and the approach of midterm elections could complicate efforts to secure final approval.
Smith’s position also aligns with recent comments from U.S. Securities and Exchange Commission Commissioner Hester Peirce. Speaking at the IC3 Blockchain Camp at Princeton University, Peirce said many blockchain projects involve publishing open-source software, which she described as a protected activity under the First Amendment.
Peirce added that developers should not automatically be treated as financial intermediaries simply because third parties use their code.
The debate comes as SEC Chair Paul Atkins continues reshaping the agency’s approach to digital assets after pledging to move away from the enforcement-focused strategy adopted under previous leadership.
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