Senator Cynthia Lummis has championed the CLARITY Act following the conviction of Tornado Cash co-founder Roman Storm, who was found guilty of operating an unlicensed money transmitting business. The bill, which passed the House in July 2025 and the Senate Banking Committee in May 2026, aims to clarify that developers of non-custodial software are not money transmitters. The Tornado Cash case highlighted legal risks for open-source developers, as Storm faced charges for code used by others, with the jury deadlocked on more serious counts. The CLARITY Act's Section 604, based on FinCEN guidance, would protect developers who do not control user funds. The bill has broad industry support, with over 60 CEOs signing a letter urging its passage.

Key facts

• Tornado Cash co-founder Roman Storm convicted of unlicensed money transmitting.
• CLARITY Act passed House in July 2025, Senate Banking Committee in May 2026.
• Section 604 protects non-custodial developers from being labeled money transmitters.
• Over 60 industry CEOs signed a letter supporting developer protections.
• Bill aims to prevent developers needing lawyers to assess code legality.

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