Developer Michael Lewellen filed an appeal in the Fifth Circuit; House Holds Hearing on How the CLARITY Act Unlocks Innovation; and more.

Renewed Case for Developer Protections in Fifth Circuit Appeal

On July 1, 2026, software developer Michael Lewellen filed an appeal in the Fifth Circuit, advancing his preenforcement challenge seeking declaratory judgement that his permissionless, decentralized crowdfunding software is not an unlicensed money transmitter under the Bank Secrecy Act. The district court dismissed the case for lack of standing, and Lewellen is now asking the Fifth Circuit to reverse that decision. In his appeal, Lewellen argues that the district court judge improperly disregarded evidence of a credible threat of prosecution facing non-custodial software developers, pointing to the prosecutions of the Tornado Cash and Samourai Wallet developers. 

On July 8, 2026, Paradigm filed an amicus brief in support of Lewellen, arguing that the DOJ has chilled innovation by advancing an erroneous interpretation of 18 U.S.C. § 1960 in prosecutions of developers of non-custodial software that enables users-controlled transactions. 

You can learn more about the case here. And, you can read Lewellen’s Fifth Circuit brief and Paradigm’s amicus brief here and here, respectively.

House Holds Hearing on How the CLARITY Act Unlocks Innovation 

The House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence held a hearing in New York titled “Building the Future of Finance: How the CLARITY Act Unlocks Innovation.” The hearing focused on how passage of the CLARITY Act could support digital asset innovation by providing regulatory certainty, encouraging the growth of digital asset activity in the U.S., and establishing a more coordinated framework between the SEC and CFTC. Lawmakers highlighted the legislation’s progress and expressed support for advancing the bill, noting its importance to maintaining U.S. leadership in the global economy.

You can watch the full hearing here. 

FCA Overview of Cryptoasset Regime and Upcoming DeFi Guidance

On June 30, 2026, the UK’s Financial Conduct Authority (FCA) issued guidance related to its “cryptoasset” regulatory regime. The guidance applies to all firms issuing regulated cryptoassets or providing cryptoasset services in the UK and addresses disclosure requirements, market abuse, stablecoin issuance, regulated cryptoasset regimes, prudential requirements, and the application of the FCA handbook to cryptoasset activities. 

Policy Statement PS26/11, Regulated Cryptoasset Activities, includes a section addressing DeFi and explains that FCA rules and guidance apply where “a clear controlling person undertakes cryptoasset activities.” The FCA will assess on a case-by-case basis whether a person falls within the scope of regulated activity, leaving DeFi participants with a UK presence in a continued state of regulatory uncertainty. The FCA committed to issuing another consultation paper later this year on “indicators of (de)centralisation,” promoting operational resilience, and mitigating financial crime risks.

This new guidance follows Consultation Paper CP25/40, published in December 2025, in which the FCA sought feedback on its DeFi-related policy proposals. In February of 2026, DEF submitted a comment letter urging the FCA to take a control-based approach to regulating DeFi. Responding to comments on CP25/40, Policy Statement PS26/11 notes that some respondents suggested that indicators of decentralization “could focus on established concepts of financial intermediation,” echoing the approach outlined in DEF’s submission.  

You can read the final policy proposal here. 

The 21st Century ROAD to Housing Act Becomes Law 

On July 11, 2026, the bipartisan housing reform package, the 21st Century ROAD to Housing Act became law. Notably, the package includes a provision prohibiting the issuance of a Central Bank Digital Currency (CBDC) until December 31, 2030. The remainder of the legislative package focuses on housing policy, including reductions to regulatory barriers in housing construction, support to community banks providing home loans, and modernizing Department of Housing and Urban Development programs. 

You can read more about the legislation here. 

DEF’s Amanda Tuminelli Named “Stablecoins Most Influential 2026 List”

Congratulations to DEF’s CEO and CLO on being named to the “Stablecoins Most Influential 2026 List” by Stablecon. The list recognizes leaders “shaping the future of the global stablecoin ecosystem.” 

You can view the full list here. 

Notable & Quotable: 

“FLEOA commends the Committee for its efforts to establish a clear regulatory framework for digital assets that promotes responsible innovation while preserving critical criminal, anti-money laundering, counterterrorism financing, sanctions enforcement, and investigative authorities. The Association believes the current version represents meaningful progress toward balancing technological innovation with public safety.”

—Federal Law Enforcement Officers Association, Letter to the Senate Committee on Banking, Housing, and Urban Affairs 

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