Intensive Negotiations in U.S. Senate on CLARITY Act: Aiming to Clarify Non-Custodial Software Developers' Legal Liability

With just over two weeks remaining before the U.S. Congress recesses on July 4, senators are intensifying behind-the-scenes negotiations to push the CLARITY Act into the Senate's full voting process as soon as the recess ends. Sources indicate that bipartisan senators will meet this week to discuss contentious provisions, notably including a clarification that non-custodial software developers 'should not be held legally liable for third-party use of their code if they were not knowingly involved in illegal activities.' Previously, law enforcement agencies expressed concerns that this provision could weaken accountability for on-chain illegal activities. Industry insiders point out that as the legislative window narrows, the CLARITY Act is entering a critical phase; if progress cannot be made before August, the related process may be further delayed due to the upcoming election cycle.