Crypto Industry Launches PAC to Shield Developers From Prosecution as CLARITY Act Heads to Senate Floor
A new Political Action Committee focused exclusively on protecting blockchain software developers from criminal prosecution launched on June 3, 2026, positioning itself as the first such organization in U.S.
A new Political Action Committee focused exclusively on protecting blockchain software developers from criminal prosecution launched on June 3, 2026, positioning itself as the first such organization in U.S. history and targeting six-figure spending across dozens of congressional races ahead of the midterm elections.
The group, called Defend Devs PAC (formally the Defend Developers PAC), was co-founded by Gavin Zavatone of the DeFi Education Fund. Its board draws from five organizations: the DeFi Education Fund, the Solana Policy Institute, Uniswap Labs, the American Innovation Project, and Orca Creative. The PAC's central objective is narrow: secure passage of developer liability protections embedded in the CLARITY Act (Digital Asset Market Clarity Act), a sweeping crypto market structure bill that cleared the Senate Banking Committee on May 14, 2026, by a 15 to 9 vote.
What Is at Stake
The core legal question driving the PAC's formation is whether developers who write open-source blockchain software can be prosecuted as "money transmitters" under federal law, even when they never hold or control user funds. Non-custodial protocols are software tools that allow users to transact directly with each other; no company or individual takes possession of the money at any point.
That distinction has not shielded developers from prosecution. In August 2025, a New York jury convicted Roman Storm, co-founder of the Ethereum privacy protocol Tornado Cash, of conspiring to operate an unlicensed money transmitting business. The DOJ filed for retrial on two unresolved counts, money laundering and sanctions violations, in March 2026, with a proposed October start date. Storm faces up to 40 additional years of exposure on those charges. Also in August 2025, the leadership of Samourai Wallet, a Bitcoin privacy tool, entered guilty pleas and received prison sentences by November 2025. In the Netherlands, Tornado Cash developer Alexey Pertsev was sentenced to more than five years in 2024 and received conditional release in May 2026 to prepare his appeal.
The U.S. cases involving Storm and Samourai Wallet have established a domestic legal precedent: in the absence of explicit legislative protection, writing and maintaining code for non-custodial protocols can be treated as a federal crime. The Pertsev conviction, decided under Dutch law, signals that the exposure for non-custodial protocol developers is not limited to the United States.
Senator Cynthia Lummis (R-WY), a co-sponsor of the Blockchain Regulatory Certainty Act that was folded into the CLARITY Act and provides the scaffolding for the developer liability exemption, put the stakes plainly on May 27: "If the Clarity Act [the CLARITY Act] doesn't pass this Congress, American software developers will be targeted again for prosecution in the near future just for publishing code."
Senator Ron Wyden (D-OR), a co-sponsor of the bipartisan Blockchain Regulatory Certainty Act that was folded into the CLARITY Act, argued the current legal framework makes no technical sense. "Forcing developers who write code to follow the same rules as exchanges or brokers is technologically illiterate," he said.
Opposition to the developer exemption has come from the National Sheriffs' Association and the National District Attorneys Association, who argue it would open gaps in financial crime enforcement. A counter-argument has emerged from an unexpected quarter: 160 former national security, intelligence, and law enforcement officials signed a letter urging Senate passage of the CLARITY Act, contending it preserves adequate prosecutorial tools.
A Small PAC in a Very Large Field
Defend Devs PAC is intentionally narrow in scope and modest in size relative to the broader crypto political spending environment. The PAC plans to raise and deploy six figures, funded primarily by crypto founders, builders, and executives, and directing those funds exclusively toward incumbent members of Congress. The logic is that established lawmakers represent the most efficient use of donor capital.
For context, Fairshake PAC, the industry's dominant political vehicle, currently holds $193 million in cash for the 2026 cycle. Coinbase has contributed $56 million to Fairshake, Ripple $48 million, and a16z $24 million. Across 14 federal and state super PACs, total crypto and AI political spending this cycle has exceeded $321 million, according to The Intercept. Defend Devs PAC is operating at a fraction of that scale but with a single, specific legislative target.
Zavatone addressed the state of developer policy directly. "For too long, developers building decentralized technologies have faced regulatory uncertainty and enforcement actions instead of clear rules and guidelines," he said.
Why This Matters Beyond the United States
The stakes extend well beyond Washington. India ranks among the top five global sources of blockchain developer talent, with a domestic blockchain market projected to reach $53.18 billion by 2030. Indian contributors to protocols like Uniswap, Ethereum-based DeFi tools, and Solana ecosystem projects operate under the shadow of U.S. legal interpretations that treat code contribution as potential criminal liability.
In Africa, Nigeria ranks first on the continent and 17th globally in crypto adoption, with its fintech sector projected to contribute $6 billion to GDP in 2026. Kenya passed its Virtual Asset Service Providers Act in late 2025, establishing itself as a regional regulatory model. South Africa is currently moving toward exchange control oversight of crypto assets, with a proposed framework that would require prior approval for cross-border crypto transfers, a requirement that could significantly affect how developers send and receive payments internationally.
Regulatory definitions codified in the United States tend to propagate internationally through Financial Action Task Force (FATF) guidance frameworks. If Congress resolves the developer liability question in favor of a clear exemption, it gives African and South Asian regulators navigating the same ambiguities a workable template. If the CLARITY Act fails or the exemption is removed in Senate negotiations, the pressure on those regional regulators to adopt a stricter posture toward non-custodial protocol builders will likely increase.
The Window Is Narrow
Analysts tracking the CLARITY Act warn that the bill must pass before the August congressional recess or its prospects deteriorate significantly. Defend Devs PAC's six-figure budget is substantially smaller than Fairshake's $193 million war chest, but the PAC's strategy centers on concentrated, targeted pressure on incumbent lawmakers at a critical legislative moment, with the explicit goal of moving a single provision across the finish line.