Crypto Firms Urge Congress to Add Developer Protections to CLARITY Act
Summary
- Major crypto companies sent a joint letter to the U.S. Congress urging it to include developer protection provisions in the CLARITY Act.
- The bill is under discussion over the scope of legal liability for DeFi and open-source developers.
- Market participants expect that including developer protection provisions could ease legal uncertainty for blockchain development and the DeFi industry in the U.S.
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Major cryptocurrency companies are urging the U.S. Congress to include developer protections in the CLARITY Act, as legal liability for DeFi and open-source developers emerges as a key issue.
Crypto-focused media outlet Watcher.Guru reported on June 9 that a group of crypto companies sent a joint letter to Congress calling for the bill to include developer protection provisions.
The signatories included Andreessen Horowitz, Aave, 1inch, Block, BitGo, Aptos, Zcash, Solana, Galaxy, Ledger, Kraken, Uniswap, Coinbase and Hyperliquid.
The companies argued that clear safeguards are needed so open-source software developers and blockchain infrastructure builders do not face excessive legal liability for user actions or illegal activity by third parties.
The CLARITY Act, which is being discussed in the Senate, is intended to clarify the legal status of digital assets and regulatory jurisdiction. The scope of protections for DeFi developers and whether stablecoins should be allowed to pay interest are said to remain key sticking points in the final stage of negotiations.
The market expects that including developer protection provisions could reduce legal uncertainty for blockchain development and the DeFi industry in the U.S.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
