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Analysis: The new version of the CLARITY bill draft may protect encryption developers from past liabilities.
[Analysis: The new version of the CLARITY bill may protect crypto developers from past liabilities] In the latest version of the CLARITY bill by the U.S. Senate Banking Committee, Bitcoin and crypto assets developers will be protected, and they will not be prosecuted for operating unlicensed money transmission businesses in the future or in the past. On Friday, the U.S. Senate Banking Committee released the latest draft of the CLARITY Act (CLARITY), which proposes to amend Section 18 of the U.S. Code §1960(a), stating 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, the amendment not only protects Bitcoin and crypto developers after the bill is passed, but also provides retroactive protection for these developers. The title of Section 501 of Draft V is "Protection of Software Developers and Software Innovation," which states: "This section and the amendments made herein shall apply to acts occurring before, on, or after the effective date of the Act."