Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Senate Judiciary Committee Chairman Chuck Grassley and lawmakers have warned that the passage of the cryptocurrency bill by Senate Banking Committee Chairman Tim Scott could reduce the ability of the police to prosecute money laundering and other illegal financial crimes.
This arrangement will free some blockchain developers from financial licensing requirements.
According to Politico’s website Grassley and Durbin wrote A secret message To Scott and member of the position Elizabeth Warren that Section 604 of the Cryptocurrency Market Structure Legislation ” It falls under the jurisdiction of the Judiciary Committee “, I add that their committee” He was not asked ” referring to the text before the Markup section, which has been stopped.
This session introduces the Blockchain Regulatory Certainty Act, part of two bills sponsored by Senator Cynthia Lummis and Senator Ron Wyden.
Law enforcement agencies are warning of loopholes in prosecution
According to the Grassley-Durbin letter, the contentions do not include ” A very dangerous group of “criminals”.
They warned that this was so It would have prevented the government from prosecuting him “Founder of Tornado Cash, a mixed cryptocurrency platform that critics said was used for money laundering.
One of the platform’s co-founders was convicted of operating a cryptocurrency exchange without a license last year, although cryptocurrency advocates and Republicans in Congress condemned the offense.
The message said: Such an opportunity can attract criminals – such as drug cartels and other organized crime groups – to move to rural areas.”
As he explained The National Association of Assistant US Attorneys echoed similar concerns, writing that the bill ” It will greatly reduce the ability of prosecutors to prosecute financial crimes related to the transfer of money outside of regulatory channels. “.
A spokesman for Scott’s committee defended the bill, saying the South Carolina Republican ” It remains committed to protecting developers while ensuring that law enforcement has the necessary tools to combat real money laundering. “.
The president issued a ruling that the Blockchain Technology Regulatory Certainty Act is in the hands of the Banking Services Committee, according to spokesman Jeff Naft.
Developer protection against financial crimes
The dispute is about financial platforms that use software to support trading and lending without intermediaries.
Democratic senators who are negotiating with Republicans have raised concerns about DeFi’s use in unofficial currencies, and are pushing for changes to the unofficial language.
They were planning to try the renovation during rehearsals before the end of the episode.
GOP supporters in cryptocurrency argue that the new exemption is necessary for innovation.
” Blockchain developers who only write the code and maintain an open platform have been under the threat of being called money movers for a long time. “Loomis said in introducing the technology for an independent BRCA bill.
” These divisions are meaningless if they don’t disrupt, control or gain user experience, which stifles innovation. “
The Solana Policy Institute also recently asked the SEC to grant transparency to developers of open source software, not storing it, arguing that current policies built around intermediaries do not lend themselves to intelligent systems in which users store their assets.
In a DeFi system, users own their assets, agree on their actions, and interact directly with public blockchains without any software that has money or discretion.
SEC Chairman Paul Atkins has previously criticized the agency’s reliance on regulation and enforcement, saying ” Engineers don’t have to follow safety rules “It’s just that they publish the program.
Commissioner Hester Pearce said similarly that regulators should not impose pressure on manufacturers who do not keep stock or ignore user choices.
Thousands of developers are facing regulatory uncertainty
This discovery affects thousands of blockchain developers in various ecosystems.
Ethereum added 16,181 new developers from January to September 2025 alone, maintaining a total of 31,869 active developers, while Solana added 11,534 new developers and grew its program number by 83% year-on-year to 17,708 active providers.
Bitcoin ranked third with 7,494 new developers and 11,036 total contributors.
Meanwhile, Scott has suspended the Banking Services Committee hearings after Coinbase withdrew its support for the main market bill.
The Senate passed a January 27 cryptobill markup as the banking lobby protects the stablecoin’s borders and Democrats want the White House to follow through on the rules.#Senate # Bank # CryptoBillhttps://t.co/iK8utlKRhr
– Cryptonews.com (@cryptonews) January 14, 2026
Coinbase CEO Brian Armstrong described the latest developments as “ Terrible “, citing concerns about DeFi restrictions, token allocation restrictions, and limits on stablecoin returns.
“We would rather have a bill than a bad bill,” Armstrong wrote, expressing hope that a better deal could be reached.
Galaxy Digital also warned that the money could give the Treasury “supervisory powers”. Similar to the Patriot Act “, including the power to suspend activities for up to 30 days without a court order and to designate foreign territories or business groups as being involved in money laundering.
The legislative path remains uncertain as lawmakers try to balance developer protections with the ability to stick around while battling industry opposition and bickering among Senate committees.
A note Legislators from both groups warn that cryptocurrency could weaken the enforcement of anti-money laundering laws appeared for the first time Cryptonews Arabic.
