Last updated on March 8th, 2026 at 03:29 pm
The policy debate over how far U.S. authorities should go in policing blockchain innovation intensified this week after industry advocacy group Coin Center called on lawmakers to advance legislation aimed at protecting software developers from prosecution.
In a letter sent to the US Congress, Coin Center argued that developers who create or maintain blockchain software but do not control user assets should not be treated as money transmitters under federal law. The group said legal uncertainty is discouraging innovation and pushing talent outside the United States, warning that treating developers like financial intermediaries could stifle growth in the sector.
— Coin Center (@coincenter) February 17, 2026
The debate centers on the Blockchain Regulatory Certainty Act, a proposal originally introduced years ago and recently updated by lawmakers to clarify that non-custodial developers and infrastructure providers should fall outside money-transmitter rules. Supporters say the bill would align blockchain development with how the law treats other internet infrastructure, such as cloud services or communication tools, which are generally not held criminally liable for how users behave online.
Developers vs enforcement: a growing legal flashpoint
The appeal of Coin Center comes at a time when federal prosecutions of crypto privacy software and decentralized platforms continue to influence policy debates. The recent prosecutions of developers associated with mixing services and wallet software have heightened concerns that code itself may soon become legally problematic. Opponents of these prosecutions see a dangerous line being drawn between software development and financial regulation.
The current legal environment has heightened concerns within the industry that innovation may migrate abroad unless a clear framework is developed. Industry supporters believe that U.S. law must differentiate between software developers who create neutral infrastructure and those who directly control customer funds or engage in illicit activity.
Bill’s future remains uncertain amid wider policy push
The proposed protections are currently under consideration as part of larger U.S. crypto market structure policy. Policymakers are increasingly being forced to consider how decentralized technologies must comply with existing financial laws.
According to the policy team at Coin Center, it is necessary to develop clear definitions for the next generation of blockchain developers, citing examples such as Satoshi Nakamoto, Vitalik Buterin, and Hayden Adams, who may be deterred from developing due to legal uncertainty.
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