Analysis: The new draft of the CLARITY Act may protect crypto developers from retroactive liability

Jinse Finance reported that in the latest version of the CLARITY Act by the U.S. Senate Banking Committee, bitcoin and cryptocurrency developers will be granted protection and will not be prosecuted in the future or retroactively for operating unlicensed money transmission businesses. On Friday, the U.S. Senate Banking Committee released the latest draft of the CLARITY Act, which proposes to amend Title 18 §1960(a) of the United States Code, stipulating that only those crypto developers or service providers who "knowingly and actually control currency, funds, or other value that substitutes for currency" will be considered as operators of money transmission businesses. In addition, this amendment not only protects bitcoin and crypto developers after the bill is passed, but also provides retroactive protection for these developers. Section 501 of Title V of the draft is titled "Protection of Software Developers and Software Innovation," and states: "This section and the amendments made by this section shall apply to conduct occurring before, on, or after the effective date of this Act."