The US House of Representatives has passed the Digital Asset Market Clarity Act of 2025, known as the CLARITY Act, with a 294-134 bipartisan vote on July 17, 2025. Embedded within this broad market structure bill is a key provision: the Blockchain Regulatory Certainty Act, which protects developers who build open-source blockchain software, operate nodes, or validate transactions from being classified as money transmitters under federal law, as long as they do not take custody of customer funds.
This distinction is critical. The vague definition of “money transmission” has historically posed a risk that regulators could target developers as unlicensed money transmitters, carrying severe penalties. The new provision draws a clear line between custodial and non-custodial activities, offering explicit statutory protection to coders and validators. Decentralized finance activities like running nodes and validating transactions are fully exempt from compliance requirements.
Industry groups, including Coin Center and the Blockchain Association, have supported the provision, arguing it is essential for maintaining a healthy innovation ecosystem in the US without treating every developer as a financial intermediary.
However, while the bill cleared the House with nearly 300 votes, it has stalled in the Senate, failing to advance twice as of December 19, 2025. The bipartisan support suggests broad political backing, but unresolved objections in the upper chamber remain a hurdle.
If enacted, Section 604 would provide one of the clearest regulatory safe harbors for the crypto industry in the US, particularly for decentralized finance protocols that operate without custodial intermediaries, offering a legal framework distinct from centralized exchanges.