Defend Developers launches PAC to shield crypto developers in CLARITY Act

Defend Developers has launched a new political action committee as negotiations over legal protections for crypto developers continue in the Senate’s consideration of the CLARITY Act.

According to a June 3 report from Crypto in America, the newly formed Defend Developers PAC will support American blockchain developers, decentralized finance builders, and software engineers working on crypto infrastructure.

The group’s launch comes as lawmakers continue debating provisions that would define how developers are treated under federal law.

Leading the initiative is Gavin Zavatone, founder of Defend Developers PAC and policy lead at the DeFi Education Fund. Speaking to Crypto in America, Zavatone said software developers have spent years dealing with regulatory uncertainty and enforcement actions instead of clear guidance.

“For too long, developers building decentralized technologies have faced regulatory uncertainty and enforcement actions instead of clear rules and guidelines.”

Zavatone added that some policymakers still lack a full understanding of how software development works while legislation and regulatory frameworks for digital assets are being drafted.

The CLARITY Act includes protections for DeFi developers

At the center of the debate is the Blockchain Regulatory Certainty Act provision included in the CLARITY Act. The measure seeks to ensure that developers who create decentralized software are not automatically held responsible for how third parties use those tools.

Several law enforcement organizations have opposed the provision, arguing that it could make investigations into illicit financial activity more difficult. Supporters of the language maintain that software developers should not be treated as money transmitters when they do not take custody of user funds.

Support for the legislation has also come from outside the crypto industry. As reported by crypto.news, the Blockchain Association announced that 160 former national security, intelligence, and law enforcement officials signed a letter urging lawmakers to advance the bill. 

According to the association, the signatories view digital asset legislation as a national security and law-enforcement priority.

While debate over developer protections continues, Senate negotiations have moved forward on other parts of the legislation.

Senate lawmakers continue advancing the crypto bill

Momentum around the CLARITY Act increased after the Senate Banking Committee approved the measure in a bipartisan 15-9 vote in May. As per reports, the bill has since been placed on the Senate Legislative Calendar, making it eligible for floor consideration once Senate leadership schedules debate.

Before that happens, lawmakers still need to reconcile the Banking Committee’s version with the text being considered by the Senate Agriculture Committee. Senate Majority Leader John Thune has not yet announced when the legislation could reach the Senate floor.

Comments from Senator Cynthia Lummis suggest negotiations remain active. During an interview on CNBC, Lummis pushed back against criticism from JPMorgan CEO Jamie Dimon, who had argued that the bill lacked anti-money laundering and Bank Secrecy Act provisions.

Responding to those claims, Lummis said the legislation contains multiple references clarifying that AML and BSA requirements already applicable to financial institutions would also apply to crypto firms. She added that lawmakers are working toward combining various digital asset proposals into a single package that can be presented for cloture and floor consideration.

Lummis also indicated that discussions surrounding DeFi protections remain ongoing, while noting that negotiators have made progress on the issue.