Kristin Smith, CEO of Solana Institute, has called on the US Senate to pass the CLARITY bill—a legislative proposal intended to regulate the structure of the cryptocurrency market—while prese
Kristin Smith, CEO of Solana Institute, has called on the US Senate to pass the CLARITY bill—a legislative proposal intended to regulate the structure of the cryptocurrency market—while preserving key protections for developers. Smith asserts that open source developers and blockchain infrastructure providers should not be regulated in the same way as financial intermediaries.
In her messages shared on the X platform, Smith emphasized that the CLARITY regulation stands a real chance of moving forward in the Senate. For this reason, she highlighted the critical importance of maintaining provisions that shield software developers. Smith also pointed out that more than 60 executives and founders from the crypto sector, including Solana co-founder Anatoly Yakovenko, have signed an open letter addressed to the Senate supporting these measures.
Smith stressed that open source developers, validators, and wallet providers who do not offer custodial services do not control user assets or conduct transactions on their behalf—therefore, they should not be classified as intermediaries or custodians.
Smith believes this approach is consistent with the Blockchain Regulatory Certainty Act. This piece of legislation aims to provide clearer legal guidelines for software developers and blockchain infrastructure providers who neither hold customer assets nor control transactions.
Mini glossary: The Blockchain Regulatory Certainty Act is a US bill that seeks to prevent developers and infrastructure providers with no controlling power in blockchain ecosystems from being treated the same as money transfer organizations. The bill focuses on reducing legal ambiguity, especially for open source developers who merely publish software.
The bipartisan proposal, introduced in January by Senators Cynthia Lummis and Ron Wyden, is designed to ensure that developers who only publish open source software code are not categorized as “money transmitters” just for that reason. Meanwhile, the CLARITY Act cleared the Senate Banking Committee in May and has now been placed on the Senate Legislative Calendar. As summer progresses, there is growing speculation about a potential full Senate vote in the coming months.
Smith’s remarks echo statements made last week by Hester Peirce, a commissioner at the US Securities and Exchange Commission (SEC). In a recent address, Peirce asserted that publishing open source blockchain code could be protected as free speech and that using such code should not automatically classify developers as financial intermediaries.
Speaking at the IC3 Blockchain Camp at Princeton University, Peirce noted that many blockchain projects rely on open source software publication—an activity she regards as generally protected under the First Amendment of the US Constitution.
The Securities and Exchange Commission remains the primary regulatory authority overseeing US capital markets. The approach towards digital assets has shifted substantially during the current tenure of Chair Paul Atkins, who has pledged to move away from “regulation by enforcement” strategies that previously unsettled the industry.
This evolving regulatory landscape has led to intensified lobbying by blockchain industry leaders who argue that the sector’s innovative power depends on clear and fair rules. The ongoing discussions aim to distinguish between pure software development and financial services operations.
Supporters of the CLARITY bill highlight the risk that unchecked regulation could stifle technological advancement in the US and chase promising blockchain talent abroad. By safeguarding developers, the bill seeks to ensure the country remains a hub for Web3 innovation.
On the other side, some policymakers warn that too many carve-outs for software developers could open doors for regulatory arbitrage and potential abuse in digital asset markets. The challenge remains to strike an appropriate balance between protecting developers and maintaining consumer safety.
With momentum building, industry observers are now focused on whether the Senate will move forward with the CLARITY bill before the end of the summer session. The outcome is poised to set a major precedent for how US authorities approach regulation of open source activity in crypto.
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