A U.S. Senate Judiciary Committee is asking that a developer protection provision be removed from a crypto market structure bill, stoking controversy, Cointelegraph reported on Sunday.
Republican and Democratic leaders argue the provision could encourage illegal money laundering. They sent their opposition to the Senate Banking Committee and the Senate Agriculture Committee.
The draft bill is part of the Blockchain Regulatory Certainty Act (BRCA) and includes language that would exempt crypto software developers from federal and state money transfer laws. The Senate Judiciary Committee pushed back, saying it moved forward "without sufficient review" of the Department of Justice and major criminal laws. It warned that if the bill passes, decentralised platforms would be more likely to become hotbeds for illegal transactions.
The Senate Banking Committee has postponed a meeting to coordinate the bill. The bill would need support from at least 60 votes to be brought to the floor. With the backing of all 53 Republicans and some Democrats needed, reactions in the crypto industry are mixed. Coinbase opposed several provisions and announced it was withdrawing support, but talks with some lawmakers are continuing.
Chi-gyu Hwang
delight@d-today.co.kr