Odaily Planet Daily reports that Bitcoin News posted on X that Coin Center stated the latest revised BRCA text removes provisions that provided clear protection from criminal liability for developers who do not control user funds under Title 18, Section 1960 of the United States Code. The revised text still protects developers who do not control user funds from being classified as money transmitters under the Bank Secrecy Act and FinCEN regulations, significantly raising the bar for prosecuting developers solely for failing to obtain a money transmitter license or register with the federal government. However, the text does not prevent prosecutors from arguing that developers knowingly transmitted funds derived from criminal activity—a theory that has become central to criminal cases against Tornado Cash developer Roman Storm and Samourai Wallet developers. Coin Center views this compromise as a substantive regulatory advancement, but developers still face broader U.S. Department of Justice theories of criminal money transmission; if the CLARITY Act is passed in its revised BRCA form, the primary battleground for these disputes will shift to the courts.
The BRCA revision removes the clause shielding developers from criminal liability. Coin Center states that the prosecution’s theory in the Roman Storm case has not been ruled out.
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Summary
The revised BRCA text removes the CFT-related provision that previously shielded developers from criminal liability under 18 U.S.C. § 1960. Developers remain protected from being classified as money transmitters under the Bank Secrecy Act and FinCEN regulations. However, the U.S. Department of Justice could still pursue cases based on the argument that developers knowingly transmitted funds derived from criminal activity, as demonstrated in the Tornado Cash case. Coin Center views this as a regulatory victory but cautions that broader legal risks persist. The MiCA framework in the EU presents a contrasting approach to cryptocurrency regulation.
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