In the U.S. Senate Banking Committee’s most recent version of the CLARITY Act, Bitcoin and crypto developers would be protected from being charged with operating an unlicensed money transmitting business moving forward — and retroactively.
On Friday, the U.S. Senate Banking Committee released its latest draft of the CLARITY Act (CLARITY), in which it proposes an amendment to 18 U.S. Code § 1960(a) stipulates that only crypto developers or providers that “knowingly exercise control over currency, funds, or other value that substitutes for currency” be treated as money transmitting businesses.
What is more, this amendment would not only protect Bitcoin and crypto developers in the wake of a bill with this language included in its passing, but it would also protect said developers retroactively.
In Section 501 of section Title V of the draft, entitled “Protecting Software Developers and Software Innovation,” it states that “This section, and the amendments made by this section, shall apply to conduct occurring before, on, or after the date of enactment of this Act.”
A Positive Development for Tornado Cash Developer Roman Storm
If this language is included in a version of the bill that is enacted into law, Tornado Cash developer Roman Storm, who was found guilty of operating an unlicensed money transmitting business last month, stands to benefit.
Storm has alluded to the notion that he plans to appeal the guilty verdict, as per reporting by Eleanor Terrett.
If CLARITY becomes law and the language regarding retroactive developer protection is included in the draft of the bill that passes, Storm’s legal team should theoretically have no issue winning at the appellate level.
Unfortunately, if CLARITY passes with the retroactive protections included, this will not help the Samourai Wallet Developers, who accepted a plea deal for operating an unlicensed money transmitting business in July.
Hellbound and Down 