US Senate Republicans Propose Removing Criminal Protection for Blockchain Developers

US Senate Republicans have proposed a revised version of the Digital Asset Market Structure Act that removes a provision shielding blockchain developers from criminal liability, according to reports. Crypto Briefing reported that this change could expose developers to greater risk of criminal prosecution. The amendment adjusts provisions related to the Blockchain Regulatory Certainty Act (BRCA), narrowing registration requirements for certain software developers' fund transfers and adding civil safe harbor protections. However, language previously protecting against criminal charges under federal law 1960 has been deleted, according to reports.

DoubleBit reported on April 14 (local time) that the revised bill reflects Democratic demands and is set for a procedural vote by the Senate on April 15. The BRCA had aimed to exempt developers and infrastructure providers who do not control user funds from being classified as money transmitters, but debate continues over the scope of criminal liability protections.