Coin Center Says Revised BRCA Text Removes Explicit Criminal Protection for Non-Custodial Developers

Bitcoin News posted on X that Coin Center said the latest revised BRCA text removed a provision that would have given explicit criminal protection under Section 1960 of Title 18 of the U.S. Code for developers who do not control user funds. According to Odaily, the revised text would still protect non-custodial developers from being treated as money transmitters under the Bank Secrecy Act and FinCEN rules, making it harder to prosecute developers solely for failing to obtain a money transmitter license or register with the federal government. Coin Center said the text would not stop prosecutors from arguing that developers knowingly transmitted funds derived from criminal activity, a theory that has been central to the criminal cases against Tornado Cash developer Roman Storm and Samourai Wallet developers. Coin Center said the compromise marks meaningful regulatory progress, but developers would still face broader money transmission criminal theories from the U.S. Department of Justice. If the CLARITY Act passes with the revised BRCA, the dispute would largely shift to the courts.