Senator Cynthia Lummis (R-Wyo.) is pressing her colleagues to approve the Digital Asset Market Clarity Act, a bill she says would end the 'absurdity' of software developers facing prosecution simply for writing code. In a statement released June 22, Lummis argued that the current legal environment leaves programmers in the United States exposed to potential criminal charges even when they do nothing more than publish open-source software.
What the CLARITY Act Would Change
The legislation, commonly called the CLARITY Act, would explicitly exempt software developers from prosecution when they publish code related to digital assets. Under existing interpretations of securities and money-transmission laws, developers who write decentralized finance protocols or blockchain tools can worry about being targeted by regulators or law enforcement for activities that involve the movement of digital tokens — even if the developers themselves never handle users' funds.
Lummis's bill aims to draw a bright line: writing and sharing code is not the same as operating an unlicensed money-service business or selling unregistered securities. The act would also clarify that developers are not legally responsible for how third parties use their software, as long as the developers do not control the underlying assets or receive a direct financial benefit from transactions.
Why Lummis Spoke Out Now
The Wyoming senator, a longtime advocate for cryptocurrency and blockchain innovation, chose to make her case in a formal statement rather than during a floor speech. She described the threat of prosecution as a 'chilling effect' that drives talent and projects overseas. 'American software developers should not have to fear jail time for writing code that powers the next generation of the internet,' Lummis said in the statement. The timing suggests she is trying to build momentum before key committee markups or floor votes later this year.
The CLARITY Act has been introduced in the Senate but has not yet received a hearing. Lummis's push comes as other digital-asset bills, like the Lummis-Gillibrand Responsible Financial Innovation Act, also advance through different committees. She did not specify which colleagues she has been lobbying, but the statement is addressed broadly to 'fellow senators.'
What Developers Face Without It
Without the CLARITY Act, developers who publish code for decentralized exchanges, crypto wallets, or token bridges can find themselves in legal limbo. The U.S. Securities and Exchange Commission and the Department of Justice have both pursued cases against individuals and companies linked to software projects, arguing that the act of coding and deploying a protocol amounts to an unregistered securities offering or an unlicensed money-transmission business. Developers have pushed back, saying that code is speech and that holding them liable for others' use of it is like prosecuting the creator of a web browser for illegal purchases made through the browser.
Lummis's bill would not eliminate all regulatory oversight. It would still allow authorities to go after developers who defraud users, steal funds, or deliberately build software to evade law enforcement. But it would carve out a safe harbor for those who publish neutral, open-source code.
What Happens Next
The CLARITY Act now sits in the Senate Banking Committee. Lummis's statement did not announce a markup date or a companion bill in the House. She is urging colleagues to bring the measure to a vote soon, arguing that the United States is falling behind jurisdictions like the European Union and Singapore, which have already passed laws that protect software developers. Whether the bill gains bipartisan support remains an open question; some Democrats have expressed concern that broad protections could shield bad actors. For now, Lummis is betting that the threat of prosecution is a problem both parties can agree to fix.
