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Solana Policy Institute urges Senate to keep CLARITY Act developer protections

**Solana Policy Institute urges Senate to protect developers and validators in CLARITY Act debate**

The Solana Policy Institute has sent a public letter to U.S. Senate leaders, pushing for explicit protections for open‑source developers and validators as lawmakers negotiate the CLARITY Act.

The dispute focuses on Section 604 — whether neutral infrastructure providers should be treated as “brokers” or “money transmitters.” If coded into law too broadly, developers, validators, wallet teams and Ethereum or Bitcoin projects could face obligations meant for custodians.

Kristin Smith, who leads the Institute, argues that writing code or running a blockchain node is not equivalent to handling client funds. Without clear separation, U.S. teams may avoid open‑source work, and infrastructure investment could shrink.

This is lobbying, not final legislation. But such letters shape how lawmakers view unintended consequences for decentralized systems. The industry wants lawmakers to regulate actual custodians — not neutral blockchain technology.

For traders, the stakes are indirect but real: developer freedom can strengthen on‑chain ecosystems; overly broad rules risk pushing talent and infrastructure offshore.