House Unveils Bipartisan CLARITY Act to Protect Crypto Developers
Representatives Scott Fitzgerald, Ben Cline and Zoe Lofgren unveiled the Promoting Innovation in Blockchain Development Act of 2026 on Feb. 26, a bipartisan bill often referred to as the CLARITY Act. The proposal seeks to make clear that authors of blockchain and smart contract code who do not exercise control over user funds should not be prosecuted under criminal code Section 1960, a statute long invoked in money-transmission cases.
The change matters because legal risk has been a major deterrent for open-source contributors and smaller teams building DeFi infrastructure. By narrowing liability for mere code authorship while leaving enforcement power intact for entities that custody or control funds, the bill aims to foster innovation without shielding bad actors. Bipartisan backing improves its prospects, but the measure must still clear committee review and floor votes before becoming law.