"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. Further Protection for Developers of Noncustodial Crypto Tech This most recent draft of CLARITY also stipulates that developers or providers of "non-controlling" (noncustodial) crypto technology shall not be treated as money transmitting businesses under 31 U.S. Code § 533"
The Senate Banking Committee draft of the CLARITY Act would amend 18 U.S. Code § 1960(a) to treat only crypto developers or providers who knowingly exercise control over currency, funds, or substitute value as money transmitting businesses. Section 501 of Title V applies the developer protections retroactively to conduct before, on, or after enactment. Tornado Cash developer Roman Storm could benefit on appeal if the retroactive language becomes law, while Samourai Wallet developers who pleaded guilty would not be helped. The draft also clarifies that developers of noncontrolling (noncustodial) crypto technology are not money transmitters under 31 U.S. Code § 533.
Read at Bitcoin Magazine
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