A coalition of cryptocurrency advocacy groups is pushing for the inclusion of developer protections in the Digital Asset Market Clarity Act.

On June 5, the DeFi Education Fund, Coin Center, the Solana Policy Institute, The Digital Chamber, Blockchain Association, Crypto Council for Innovation, and the Bitcoin Policy Institute issued a joint statement urging lawmakers to incorporate the Blockchain Regulatory Certainty Act (BRCA) into the broader Clarity Act.

The groups argued that software developers and infrastructure providers behind non-custodial crypto platforms should not be classified as money transmitters.

The coalition stressed that such developers “have little in common with traditional financial institutions and should not be treated as such,” warning that without these safeguards, US innovation in the crypto space could suffer and developers may face undue legal exposure.

The groups are calling for the BRCA, reintroduced by Representatives Tom Emmer and Ritchie Torres, to be added as an amendment. 

BRCA would explicitly exempt developers of non-custodial, peer-to-peer software from money transmitter obligations under current financial laws.

Coin Center’s Neeraj Agrawal, in an accompanying X post, said the coalition is closely watching for “the ever-present risk of unconstitutional surveillance requirements” in upcoming legislation.

Agrawal noted that the BRCA would codify existing FinCEN guidance from 2013 and 2019, which clearly states that such developers are not money transmitters, criticising recent actions in cases against Tornado Cash and Samourai Wallet, where the Department of Justice disregarded it.

With bipartisan backing from Representatives Emmer and Torres, Agrawal stated that the bill is “ready to pass” and offers a straightforward, nonpartisan solution to a growing legal threat.

The Clarity Act, introduced in May 2025, would establish a formal regulatory structure for digital assets in the United States by defining the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission while also distinguishing between digital commodities and securities.

The bill also outlines regulations around stablecoins, custody, and investor protections, with the goal of keeping crypto firms and capital within the country.

Representative French Hill, one of the sponsors, said the legislation would help ensure the US fosters crypto innovation without compromising oversight.

But despite growing support for regulatory clarity, internal divisions in Congress have already begun to complicate the bill’s progress.

During a June 4 House hearing, the bill sparked partisan disagreements.

Democrats accused the SEC of providing Republicans with private written analysis while offering minimal and unhelpful technical assistance to their side.

There are also concerns among Democrats that the Clarity Act could reduce the SEC’s oversight and allow traditional finance firms to exploit regulatory gaps by posing as crypto businesses. They argue this may increase risks to consumers.

Supporters, on the other hand, argue that the real risk lies in overregulating the wrong actors.

At the same hearing, Uniswap Labs CLO Katherine Minarik warned that expanding money transmitter rules to cover non-custodial platforms presents “a profound threat” that could stifle innovation.

Congressman Tom Emmer echoed the concern, noting that developers “who never touch users’ funds” still face “potential questions of liability,” warned that without clear legal boundaries, the US risks driving talent and crypto development offshore.

The fate of the bill now lies in the upcoming markup session, scheduled by the House Financial Services Committee for June 10, where lawmakers are expected to debate and potentially amend the legislation before it moves forward in the legislative process.

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