On Friday, the US Senate Bank Committee released its latest draft of the Clarity Act (clarity), where it proposes a change in 18 US code § 1960 (a) determines that only crypto developers or providers who “deliberately exercise control of currency, funds or other value replacing currency” are treated as money transporting businesses.
In addition, this amendment would not only protect Bitcoin and Crypto developers in the wake of a bill with this language included in its passing, but it would also protect the developers retroactively.
Section 501 of the Title V section of the draft, entitled “Protection of Software Developers and Software Innovation,” states that “this section and changes made by this section apply to behavior that takes place before, on or after the date of adoption of this law.”
A positive development for Tornado Cash Developer Roman Storm
If this language is included in a version of the bill passed in the law, Tornado Cash Developer Roman Storm, found guilty of running an unlicensed money that transmits business last month, is in favor.
Storm has referred to the notion that he plans to appeal the guilty verdict in accordance with reporting from Eleanor Terett.
If clarity becomes law and the language of retroactive developer protection is included in the draft of the bill, Storm’s Legal Team theoretically, should have no problem winning at the appeal level.
Unfortunately, if clarity passes with the recurring protection, this will not help Samorai -Tevebog developers who accepted a plea to run an unlicensed money transmitting business in July.
Further protection of developers of non -providing crypto -tech
This latest draft clarity also determines that developers or providers of “non-controlling” (non-providing) cryptotechnology should not be treated as money that transmits companies under 31 US code § 5330. This would also be used retroactively.
Non-controlling developers are defined as those who create or work with “Distributed Head Book Service (s), that in the ordinary operating process does not have the legal right to the unilateral and independent ability to control, commence as needed or implement transactions involving digital assets that users are entitled, without approval, or direction of any other third party.”
The definition applies to developers of Crypto services, software or hardware that help customers facilitate self -retardation and storage of digital assets.
What’s coming then?
Congress is back in session from September 2, 2025, and the US Senate Bank Committee plans to continue to prioritize clarity after accepting input on the bill from many members of the crypto industry.
“This legislative draft reflects feedback from hundreds of stakeholders on a number of questions as part of the request for Information (RFI) about July discussion,” a Senate Bank Committee spokesman told Bitcoin Magazine. “President Scott, Senator Lummis and their colleagues will continue to work in a Topartsian way of delivering an end product that will protect investors, promote innovation and keep the future of digital funding rooted in America.”
No hearings regarding the bill are currently in the Senate Bank Committee’s calendar.