U.S. Senate Intensifies Talks on CLARITY Act's Non-Custodial Developer Liability Clause This Week

According to industry sources, U.S. senators are accelerating behind-the-scenes negotiations this week on the CLARITY Act ahead of Congress's July 4 recess, with bipartisan lawmakers expected to meet to discuss disputed provisions. A key focus is clarifying that non-custodial software developers should not face legal liability for third-party use of their code unless they knowingly facilitate illegal activity. The move comes as law enforcement agencies have expressed concern that such protections could weaken their ability to pursue blockchain-based violations. Industry observers noted the legislative window is narrowing; if progress stalls, the bill may face further delays into the election cycle.
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