Solana Institute CEO urges Senate to shield open-source developers in CLARITY Act
In brief
- Kristin Smith urges Senate to pass CLARITY with developer protections intact
- Open-source developers shouldn't be regulated as financial intermediaries, she argues
- 60+ crypto CEOs including Solana co-founder Anatoly Yakovenko signed supporting letter
- CLARITY cleared Senate Banking Committee in May, now on legislative calendar
Developer Protections at Center of Debate
Smith urged the Senate to maintain robust developer safeguards in CLARITY, contending that open-source developers, validators and non-custodial wallet providers do not control user funds or execute transactions and therefore should not be treated as brokers or custodians. The distinction matters for regulatory compliance.
More than 60 crypto CEOs and founders—including Solana co-founder Anatoly Yakovenko—signed an open letter backing this position. Their support underscores the industry-wide concern that overly broad regulation could chill innovation on blockchain infrastructure.
Legislative Pathway Clears
The CLARITY Act cleared the Senate Banking Committee in May and was recently placed on the Senate Legislative Calendar, positioning it for a possible floor vote later in the summer. Smith said the bill "has a real shot at passing the Senate," signaling momentum.
The Blockchain Regulatory Certainty Act (BRCA), introduced in January by Senators Cynthia Lummis and Ron Wyden, serves as a companion measure aimed at preventing open-source developers from being classified as money transmitters solely for publishing software code. The BRCA would provide legal certainty for noncontrolling software developers and blockchain infrastructure providers that do not custody customer assets or control transactions.
First Amendment Alignment
Smith's push aligns with recent remarks by SEC Commissioner Hester Peirce, who argued that publishing open-source blockchain code is protected speech. Speaking at the IC3 Blockchain Camp at Princeton University, Peirce said that "many blockchain projects involve publishing open-source software, which is generally a protected activity under the First Amendment."
The framing resets the debate. If code is speech, then developers aren't intermediaries—they're speakers. That distinction could reshape how regulators approach the crypto ecosystem's foundational layer.
