Woofun AI reports that the CLARITY Act remains stalled in the Senate one year after House passage, with a potential vote anticipated before the August recess. Industry groups highlight Section 604 as critical for shielding non-custodial developers from money transmitter classifications under the Bank Secrecy Act.

CertiK’s Stefan Muehlbauer warns that removing this provision could equate software development with financial services, triggering First Amendment challenges. The bill also addresses accounting standards and restricts the SEC from reimposing custody requirements without formal rulemaking, while Openpayd’s Iana Dimitrova emphasizes the need for federal stablecoin regulation.