$NEIRO

🧑‍⚖️ Bipartisan Senators Raise Enforcement Alarm

Senate Judiciary Committee leaders — Republican Chuck Grassley and Democrat Dick Durbin — have publicly warned that a key provision in the current Senate crypto market‑structure bill could hinder money‑laundering enforcement. They argue the bill’s developer exemption language would create a gap in federal criminal law, making it harder for prosecutors to hold developers and operators accountable for illicit finance — particularly in cases similar to Tornado Cash, a sanctioned crypto “mixer” used for laundering criminal proceeds.

The contested language comes from a provision drawn from the Blockchain Regulatory Certainty Act (BRCA), included in the broader market‑structure bill. It seeks to clarify that software developers and other infrastructure providers that do not control user funds aren’t subject to money‑transmitter requirements. Supporters say this spurs innovation; critics say it weakens anti‑money‑laundering (AML) laws.

Grassley and Durbin say they weren’t consulted on these changes and warn they would undermine enforcement of federal criminal codes and could “weaken” prosecution of unlicensed money transmission.

🔁 Wider Legislative Context

The Senate is working on a long‑anticipated crypto market structure bill that aims to clarify U.S. regulation — including how digital assets are defined and which agencies regulate them. But it’s not moving smoothly.

Coinbase and other industry groups have pulled support from the broader crypto reform bill, delaying key committee action and highlighting industry pushback.

Some senators are concerned the bill could expand surveillance powers or risk destabilizing aspects of the crypto market.

⚖️ Innovation vs. Enforcement Tension

This debate reflects a deeper policy tension:

Proponents of developer exemptions (including some lawmakers like Senators Lummis and Wyden) argue that open‑source developers shouldn’t face licensing or prosecution simply for writing code, especiall#MarketRebound