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Coin Center has urged US lawmakers to preserve legal safeguards for blockchain developers, warning that weakening proposed protections could slow innovation and drive crypto talent overseas. In a formal letter to the Senate Banking Committee, the crypto policy group argued that software creators and infrastructure providers should not be prosecuted simply because bad actors misuse open blockchain tools.
The debate centers on the Blockchain Regulatory Certainty Act (BRCA), a bill designed to clarify how US law treats non-custodial crypto developers. Supporters say the measure is essential for crypto developer protections and long-term regulatory clarity.
This article explains what the bill does, why Coin Center is concerned, and how the decision could affect the future of US crypto innovation.
Why Crypto Developer Protections Matter
Coin Center says crypto developer protections should work similarly to rules governing the internet’s core infrastructure. Internet service providers, cloud hosting firms, browser makers, and email platforms are generally not held criminally liable when users commit crimes using their services.
According to the group, blockchain developers operate in a similar role when they publish open-source code or maintain non-custodial infrastructure. They do not hold customer funds and do not execute transactions on users’ behalf. Treating them as money transmitters, Coin Center argues, creates legal risk where it does not belong.
The organization warned that without clear crypto developer protections, builders may hesitate to release new protocols or privacy tools due to fear of prosecution.
What The BRCA Bill Aims To Clarify
The Blockchain Regulatory Certainty Act was first introduced in 2018 by Representative Tom Emmer. A newer draft has been advanced by Senators Cynthia Lummis and Ron Wyden to update definitions around crypto infrastructure.
The BRCA states that developers and service providers who never take custody of user assets should not be classified as money transmitters under federal law. That distinction is critical because money transmitters face strict licensing, compliance, and reporting requirements.
By clearly separating custodial financial businesses from non-custodial software developers, the bill strengthens crypto developer protections and reduces regulatory confusion.
Coin Center says passing the BRCA intact would give US-based developers the confidence to keep building domestically instead of relocating to friendlier jurisdictions.
Rising Prosecutions Increase Urgency
The push for crypto developer protections follows several high-profile prosecutions of crypto software creators in the United States. These cases have intensified debate over where coding ends and financial liability begins.
One major case involved developers tied to Tornado Cash, while another targeted the founders of the Samourai Wallet project. Prosecutors claimed the tools enabled unlawful transactions, while critics argued that publishing code should not automatically equal criminal conduct.
Coin Center believes these cases show why lawmakers must clearly define the legal boundaries for developers. Without updated statutes, enforcement may continue to stretch older financial laws to cover modern decentralized technology.
Innovation Risks If Protections Are Weakened
Coin Center’s policy team warned senators that removing or weakening BRCA language could discourage responsible builders. Legal uncertainty often hits small startups and independent developers hardest because they lack resources for extended court battles.
The organization pointed to historic crypto innovators such as Satoshi Nakamoto, Vitalik Buterin, and Hayden Adams — all of whom began by publishing and improving decentralized protocols rather than operating custodial financial services.
Strong crypto developer protections help ensure future innovators can experiment and publish code without being automatically treated as financial intermediaries.
Coin Center argues that market structure reform and innovation policy will only succeed if developers feel legally safe to build foundational tools.
Senate Review Still Ongoing
The Senate Banking Committee is continuing to review the updated BRCA draft. No final markup or vote has been completed yet. Coin Center’s letter urges lawmakers to move the bill forward without stripping out key crypto developer protections.
Supporters say the measure would improve US competitiveness, attract blockchain startups, and provide long-needed clarity. Critics worry about potential loopholes, but advocates respond that the bill is narrowly focused on non-custodial actors.
The final outcome could shape how crypto developer protections are applied in the United States for years to come — influencing where the next generation of blockchain infrastructure is built.