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

- Channel: [ETHGlobal](https://streameth.org/ethglobal)
- Date: 2026-07-09
- Duration: 17:56
- Topics: Clarity Act, Lindsay Fraser, Blockchain Association, ETHConf, market structure, developers, DeFi, regulation, token classification, SEC, CFTC, digital assets, developer protections, Section 601, Section 207, Section 604, Blockchain Regulatory Certainty Act, BRCA, Bank Secrecy Act, Section 1960, money services business, FinCEN, non-custodial, securities, Gary Gensler, Senate, House, filibuster, bipartisan, law enforcement, national security, onshoring, innovation, policy
- Watch: https://streameth.org/watch/yt-lKggG-f4Dig
- YouTube: https://www.youtube.com/watch?v=lKggG-f4Dig

## Description

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

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