House Panel to Vote on Crypto Bill with Blockchain Developer Protections

US lawmakers on the House Financial Services Committee are set to convene for a markup hearing on Tuesday to deliberate on a cryptocurrency market structure bill. This bill is anticipated to undergo amendments that would offer enhanced protections for blockchain developers. The proposed amendment, introduced by committee chair French Hill, focuses on the "treatment of certain non-controlling blockchain developers." This amendment suggests that specific blockchain developers or service providers would not be classified as money transmitters, thereby exempting them from the associated registration requirements.

The provision for blockchain developers appears to be derived from the Blockchain Regulatory Certainty Act, a piece of legislation spearheaded by Representative Tom Emmer and a bipartisan group of lawmakers in May. Several crypto advocacy groups, including the Blockchain Association, have urged lawmakers to merge the two bills. The Tuesday markup hearing will feature a critical discussion and vote on amendments to the CLARITY Act before potentially advancing the bill to the full chamber. In the Senate, lawmakers are expected to soon vote on the GENIUS Act, legislation aimed at regulating payment stablecoins. Senate Majority Leader John Thune reportedly expressed a desire to finalize the bill this week.

Representative Maxine Waters, the ranking member of the House Financial Services Committee, has not indicated support for the CLARITY Act, suggesting that she and many other Democrats may not vote for it. Waters organized a Minority Day hearing to address allegations of corruption linked to US President Donald Trump’s ties to the crypto industry. However, at least one Democratic representative, Ritchie Torres, who has previously advocated for legislation impacting the crypto industry, has suggested he will support the market structure bill. Torres is a co-sponsor of both the CLARITY Act and the Blockchain Regulatory Certainty Act.

The proposed amendment to the CLARITY Act includes the Blockchain Regulatory Certainty Act (BRCA), which has been endorsed by eight major US crypto industry associations. The BRCA aims to protect developers of non-custodial, peer-to-peer technologies while maintaining strong oversight of custodial financial institutions. The initiative argues that software developers are not required to register as money-transmitting businesses since they do not control customer funds. This amendment reflects a careful balance, building on FinCEN’s 2019 guidance to clarify that developers and infrastructure providers shouldn’t be regulated like money transmitters when they don’t control customer funds.

The CLARITY Act focuses on dividing responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding the regulation of digital assets. The Financial Services Committee has scheduled a markup for the CLARITY Act for June 10, 2025, alongside multiple other bills. The bill aims to establish a regulatory framework for crypto assets in the US, providing the long-awaited clarity and protection for the industry. The amendment was initially proposed by Tom Emmer on May 21 and has since gained bipartisan support, including from Senator Ritchie Torres. The bill aims to include clear protections for software developers and companies that support decentralized networks. French Hill, Chairman of the House Financial Services Committee, introduced the CLARITY Act on May 29, admitting it aims to establish a regulatory framework for crypto assets in the US, providing the long-awaited clarity and protection for the industry.

Emmer argued that the US should be the global home for responsible innovation, not a place where developers are punished for building open-source software or experimenting with new technologies. She also believes that the legislation protects innovation, upholds civil rights, and strengthens the US’s global competitiveness in the 21st-century economy. The amendment is a significant step forward in providing clarity and protection for the crypto industry, ensuring that developers and infrastructure providers are not unfairly regulated.