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▲ Solana (SOL)
The Solana Policy Institute warned the Senate that if developer protection provisions are omitted, the US blockchain industry could be pushed overseas.
According to crypto media NewsBTC on June 16 (local time), the Solana Policy Institute urged Senate leaders to maintain provisions protecting open-source developers and validators during the discussion of the US crypto market structure bill.
The core issue is Article 604 of the bill. The Institute argued that developers and validators should not be treated as financial intermediaries simply for writing code or operating a network. It believes that businesses holding customer assets and neutral technology providers should be legally distinguished.
Kristin Smith, who leads the institute, urged in an open letter that the relevant protective language must be maintained. Wallet developers, smart contract developers, and validators may not directly control customer funds. However, if the legal distinction is unclear, they could be burdened with obligations similar to those of brokers or money transmitters.
If developer protection is omitted, open-source development in the US could be stifled. Small development teams might abandon their businesses to avoid regulatory risks. Validators and wallet/decentralized finance infrastructure companies are also more likely to move their operations outside the US.
This open letter does not signify the passage or failure of the bill. It is an effort by the institute to reflect the need for developer protection in the legislative process. Not only Solana (SOL) but also Ethereum, Bitcoin Layer 2, and decentralized finance protocols will be affected by the scope of the final bill.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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