House Crypto Bill Adds Developer Protections as Lawmakers Prepare for Debate
U.S. lawmakers have added a significant new safeguard for software developers to a major digital asset bill, addressing concerns from crypto advocacy groups ahead of a high-stakes House debate.
The updated version of the Digital Asset Market Structure bill, set for discussion on Tuesday, now includes a provision that explicitly protects developers of non-custodial, peer-to-peer crypto platforms. This addition aims to clarify that these developers are not operating unlicensed money services or acting as money transmitters—a distinction that has long been a point of tension between the crypto community and regulators.
The protective measure stems from the Blockchain Regulatory Certainty Act, a bipartisan effort led by Reps. Tom Emmer (R-Minn.) and Ritchie Torres (D-N.Y.), which was reintroduced last month. It’s designed to create clearer legal boundaries for those building decentralized technologies, without weakening oversight of centralized financial institutions.
Crypto advocacy organizations including Coin Center, the DeFi Education Fund, Crypto Council for Innovation, Uniswap Labs, and the Blockchain Association welcomed the amendment. In a joint statement, they described the change as “a meaningful step toward protecting developers of non-custodial, peer-to-peer technologies while maintaining strong oversight of custodial financial institutions.”
The amendment comes as part of a 247-page rewrite of the bill—formally known as an amendment in the nature of a substitute—that would overhaul the full legislative text. It will be considered during a broader session where the House Financial Services Committee is scheduled to debate eight bills, including the renamed Digital Asset Market Clarity Act.
At its core, the Clarity Act seeks to build a long-awaited regulatory framework for digital assets. It aims to define the respective oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while also introducing consumer protection rules requiring firms to disclose risks and keep customer funds separate from company assets.
But while momentum is building, bipartisan agreement hasn’t come easily. Some Democrats remain skeptical, citing recent developments in the crypto space involving former President Donald Trump. His public forays into digital assets—including the launch of Trump-backed World Liberty Financial, a personal stablecoin, and a memecoin accompanied by a high-profile dinner for top holders—have sparked ethical and regulatory questions.
Adding to the friction, Democratic aides reported that a recent SEC meeting meant to provide routine technical input on the bill “did not go well,” alleging that agency representatives struggled to answer key questions and gave the impression they were “trying to hide the ball.”
Despite these roadblocks, the scheduled 10 a.m. ET markup session on Tuesday marks a pivotal moment in the effort to bring legal clarity to the fast-evolving crypto industry. If passed, the bill could shape how digital assets are built, traded, and regulated in the U.S. for years to come.