Concerns Over Legal Repercussions for Cryptocurrency Developers
As concerns grow regarding the legal repercussions for cryptocurrency developers following notable convictions in 2025, Coin Center has urged the Senate Banking Committee to support critical legislative measures designed to protect these innovators. The nonprofit advocacy group recently sent a letter highlighting the importance of maintaining safeguards within the Blockchain Regulatory Certainty Act (BRCA), which aims to prevent the prosecution of developers who do not control users’ financial assets.
Overview of the Blockchain Regulatory Certainty Act
The BRCA, initially proposed by Representative Tom Emmer in 2018, saw a new iteration introduced last month by Senators Cynthia Lummis and Ron Wyden. This revised proposal intends to clarify federal regulations concerning money transmission, specifically stating that developers and providers of blockchain infrastructure should not be treated as money transmitters, provided they do not take custody of assets belonging to users. However, the Senate Banking Committee has yet to hold discussions or vote on this rewritten bill.
Coin Center’s Advocacy and Legal Parallels
In the letter, Coin Center’s policy director, Jason Somensatto, drew parallels between blockchain developers and established tech entities, such as internet service providers and cloud hosting firms, arguing that these companies are not penalized when individuals exploit their technology for illegal activities. He emphasized that developers should receive the same level of legal immunity when creating software that does not involve direct control over clients’ funds.
Impact of Recent Legal Cases
This urgent call to action from Coin Center comes in the shadow of several high-profile legal cases from 2025, where individuals involved in cryptocurrency development faced severe penalties. Notably, Tornado Cash’s Roman Storm and the founders of Samourai Wallet, Keonne Rodriguez and Will Lonergan Hill, were convicted of operating an unlicensed money-transmitting business, drawing harsh sentences of five and four years in prison, respectively. Storm is currently awaiting sentencing, underscoring the chilling effect these cases have on the crypto development landscape.
Future of Cryptocurrency Development in the U.S.
Coin Center warns that failing to solidify protections in the BRCA could deter developers from continuing their work in the U.S., alleging that ambiguity in the law may force them to relocate operations abroad where regulatory conditions may be more favorable. As Congress deliberates on the future of digital asset regulations, this legislative push continues to be a focal point of concern within the cryptocurrency community.
