The Clarity Act: What It Means for Developers | Lindsay Fraser (Blockchain Association) at ETHConf

Sun, Aug 2, 2026, 12:00 AM

In this talk, Lindsay Fraser, who leads policy at the Blockchain Association, explains what the Clarity Act means for developers. The Blockchain Association is a nonprofit that advocates for the digital asset industry in Washington DC with over 100 member companies. She notes the timeliness: the day before, the association brought over 30 member companies to DC and met with 52 different Senate offices amid active negotiations. The Clarity Act is the current name for market structure legislation moving through the US Senate, the result of years of bipartisan effort dating back to 2020. At a high level it does three things: establishes token classification, trading, and market rules (fixing the impossibility of building in the US without clear rules during the Gary Gensler era at the SEC); sets registration requirements and consumer protections for intermediaries across the SEC and CFTC; and defines developer rules and protections outlining what software builders are and are not regulated for, the crux of the current debate. Lindsay explains why clarity matters: for years developers lacked answers to whether publishing code, operating a front-end, or participating in governance are regulated activities, and regulation by enforcement drove developers offshore. She walks through the process: the House passed it last June with 294 votes including 78 Democrats, the Senate Agriculture Committee advanced its portion 12 to 11 on party lines, and the Senate Banking Committee recently voted its portion out with a bipartisan outcome, with the two bills now to be combined and reach 60 votes to bypass the filibuster before November midterms complicate things. She details three developer protections: Section 601 clarifies the 1933 and 1934 Acts so non-custodial developers are not intermediaries needing to register as exchanges, brokers, or dealers; Section 207 does the same under the Commodity Exchange Act for the CFTC; and Section 604, the Blockchain Regulatory Certainty Act (BRCA), shields non-custodial developers from Bank Secrecy Act obligations and prosecution under Section 1960 for unlicensed money transmission. She frames the BRCA as a codification of 2019 FinCEN guidance, counters law enforcement opposition as a mischaracterization (noting titles 2 and 3 strengthen prosecutors), and cites a letter from 160 officials plus 60+ CEOs, closing that developer protections must remain intact. 00:00 Introduction 00:11 Who the Blockchain Association Is 00:40 Meeting 52 Senate Offices in One Day 01:24 What the Clarity Act Aims to Do 01:50 The Three Buckets of the Bill 01:57 Token Classification and the Gensler Era 02:22 Requirements for Intermediaries 02:44 Developer Rules and Protections 03:09 Why Clarity Matters for Developers 03:34 The Unanswered Questions Builders Face 03:56 How Regulation Drove Developers Offshore 04:22 Drawing a Line Between Software and Intermediaries 04:51 Where We Are in the Process 05:13 The Overwhelming House Vote 05:35 The Senate Agriculture Committee Vote 05:58 The Bipartisan Senate Banking Vote 06:19 Combining the Bills and the 60-Vote Threshold 06:45 Why the Midterms Add Urgency 07:06 The Three Core Developer Protections 07:24 Section 601 and the 1933 and 1934 Acts 07:46 Protecting Non-Custodial Developers 08:36 Section 207 and the Commodity Exchange Act 08:50 The Key Line of Custody and Control 09:10 Section 604: The Blockchain Regulatory Certainty Act 09:41 The Threat of Section 1960 Prosecution 10:28 The Cost of Investigations on Founders 10:59 Why the BRCA Must Not Be Watered Down 11:22 A Codification of 2019 FinCEN Guidance 11:57 The Bipartisan History of the BRCA 12:53 The Opposition From Law Enforcement Groups 13:22 Why the Opposition Mischaracterizes the BRCA 13:52 How Titles 2 and 3 Strengthen Prosecutors 14:38 The Letter From 160 Law Enforcement Officials 15:50 The Industry Letter From 60 CEOs 16:16 Why Developer Protections Must Be a Priority 16:49 A Call to Share Developer Stories 17:48 Closing _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ *ETHConf 2026* ETHConf is a 3 day event for founders, industry leaders, and builders who are excited about the possibilities of building on top of Ethereum. Connect with 2,000+ top innovators in crypto, finance, technology, and policy at our inaugural three-day event packed with showcases, demos, partnerships, and conversations shaping the future of the global economy. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅ *Follow ETHConf* X: https://x.com/ethconf Website: https://ethconf.com _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 🎟️ Get your early bird tickets for ETHConf 2027: https://ethconf.com/2027#tickets 🎤 View the full ETHConf 2026 Speaker Schedule: https://ethconf.com/schedule _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _