Coin Center Fights to Save Crypto Developer Protection Bill

Coin Center urges the Senate to advance the BRCA bill to protect crypto developers who do not control user funds from prosecution.

Coin Center has urged the US Senate Banking Committee to advance legislation that would shield crypto developers from prosecution when they do not control user funds.

The group warned that removing protections from the Blockchain Regulatory Certainty Act could discourage blockchain innovation in the United States.

Senate Review of the Blockchain Regulatory Certainty Act

The Blockchain Regulatory Certainty Act, known as the BRCA, was first introduced in 2018 by Representative Tom Emmer.

Moreover, Senators Cynthia Lummis and Ron Wyden introduced a revised version last month to clarify federal money transmitter rules.

The updated bill seeks to confirm that software developers and blockchain infrastructure providers are not money transmitters if they do not take custody of customer assets.

Lawmakers are reviewing the draft, and it has not yet been marked up or voted on by the Senate Banking Committee.

Coin Center sent a formal letter to the committee asking lawmakers to preserve the bill’s core protections.

The organization stated that legal clarity is necessary for developers who build decentralized tools and services.

Coin Center’s Argument for Developer Protections

In the letter, Coin Center policy director Jason Somensatto compared blockchain developers to internet service providers and cloud hosting companies. He said these service providers are not prosecuted when criminals misuse their platforms.

https://t.co/s2WfxKDelb

— Coin Center (@coincenter) February 17, 2026

“This is the same type of activity conducted every day by internet service providers, cloud hosting services, router manufacturers, browser developers, and email providers,”

Somensatto wrote. He added that authorities do not threaten those actors with prison when criminals misuse their systems.

He argued that the same legal standard should apply to blockchain developers who publish code but do not manage user funds.

Somensatto said the BRCA would allow future innovators to build decentralized systems without fear of criminal liability.

Related Reading: Senate Banking Confirms Crypto Bill Talks With SEC Chair Atkins

Recent Convictions and Industry Concerns

The debate comes after several crypto developers were convicted in the United States in 2025.

Those cases included Tornado Cash developer Roman Storm and Samourai Wallet founders Keonne Rodriguez and Will Lonergan Hill.

Consequently, courts convicted all three of conspiring to operate an unlicensed money-transmitting business.

Meanwhile, judges sentenced Rodriguez to five years in prison and Lonergan Hill to four years. Storm is awaiting sentencing.

Coin Center stated that weakening the BRCA could increase uncertainty for developers working in open-source software.

The group warned that some developers may choose to leave the United States if clear protections are not enacted.

Lawmakers continue to review the bill as discussions over digital asset regulation progress in Congress.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

CFTC clarifies cryptocurrency margin rules: BTC and ETH capital deduction rate of 20%, permitting investment in the derivatives market

The U.S. Commodity Futures Trading Commission (CFTC) recently released an FAQ clarifying the rules for using cryptocurrencies as margin in derivatives markets, specifically setting capital deduction rates of 20% for Bitcoin and Ethereum and 2% for stablecoins. The pilot program will be limited to three coin types in the first three months, after which it will expand to additional cryptocurrencies and relax reporting requirements. Qualifying crypto assets may be used as margin, marking a gradual acceptance of blockchain assets within the U.S. financial system.

動區BlockTempo33m ago

Brazil Plans to Postpone Cryptocurrency Tax Policy Decision Until After Presidential Election in October This Year

Gate News reported that on March 22, Brazil's Finance Minister revealed that the country will delay its decision on cryptocurrency tax policy until after the presidential election this October. Brazil will hold its presidential election in October 2026, and the government has decided to make a final decision on cryptocurrency tax policy after the election concludes.

GateNews44m ago

US SEC and CFTC Jointly Release Interpretive Guidance on Crypto Assets, Expected to Take Effect on March 23

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued interpretive guidance on crypto assets that will take effect on March 23, replacing the framework released in 2019. This guidance provides clear regulatory direction to market participants and promotes compliant development of the crypto industry.

GateNews1h ago

US House Financial Services Committee will hold a tokenization hearing next Wednesday

Gate News Announcement: On March 22, according to crypto journalist Eleanor Terrett's post on X platform, the U.S. House Committee on Financial Services plans to hold a hearing on tokenization next Wednesday at 10 a.m. Eastern Time. Blockchain Association CEO Summer Mersinger will attend the hearing as an invited witness.

GateNews1h ago

US CFTC Releases Crypto Asset Collateral Pilot Guidance: BTC/ETH Capital Adequacy Ratio 20%, Stablecoins 2%

The U.S. Commodity Futures Trading Commission (CFTC) has released guidance on a pilot program for crypto assets as collateral, allowing Bitcoin, Ethereum, and stablecoins to be used as margin. Futures brokers must comply with capital requirements and regulatory reporting obligations, and after three months can expand to other crypto assets as collateral. The guidance clarifies the use cases for crypto assets and derivatives clearing requirements.

GateNews2h ago

Kalshi Faces TRO in Nevada Over Event-based Markets

A Nevada court issued a temporary restraining order against Kalshi, preventing it from offering event-based contracts without proper licensing. This reflects growing regulatory scrutiny on prediction markets, which face challenges in classification and regulation, especially concerning gambling laws.

TodayqNews11h ago
Comment
0/400
No comments