The Senate Banking Committee is moving closer to a vote on new legislation that would set rules for digital asset markets. Coin Center, an advocacy group focused on cryptocurrency policy, has outlined its main priorities as the passage of the Blockchain Regulatory Certainty Act (BRCA) and ensuring that developers of decentralized protocols are not placed under expanded regulatory oversight by agencies such as the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), or Department of Treasury.
According to Coin Center, “the BRCA is attached and unmodified, and the jurisdiction of the Treasury and SEC with respect to software developers is generally well-restricted.” The organization expressed support for much of the proposed bill but identified some areas where further clarity or changes may be needed.
The draft legislation includes several key sections:
- Title I amends securities laws to clarify that digital assets are not considered securities by default. It separates the nature of digital assets from activities that might constitute investment contracts.
- Title II updates anti-money laundering rules in line with new categories of digital commodity intermediaries expected to be regulated by the CFTC.
- Title III introduces a framework distinguishing between decentralized and non-decentralized finance protocols. Only those protocols under centralized control would face certain regulatory obligations.
- Title IV allows banks to engage in permitted digital asset activities and directs regulators to update risk rules.
- Title V requires agencies to study emerging financial technologies without imposing new regulations.
- Title VI provides statutory protections for software developers and users regarding how financial regulations apply to non-custodial blockchain activity.
Coin Center noted specific concerns about Section 301, which could allow broad definitions of “control” by future SEC rulemaking. This could result in coordinated groups of developers being treated as having control over a protocol even if no single person can alter it unilaterally. “This is a real threat, however we are working with the drafters to find an amenable solution,” Coin Center stated.
Section 302 directs Treasury to issue guidance on how sanctions laws apply to distributed ledger application layers but does not create new enforcement authority or expand existing statutes.
Another area highlighted was Section 601, which establishes exclusions from securities laws for software development activities but contains language that could allow future rulemaking to limit these exclusions—particularly regarding distribution of software. Coin Center pointed out that “distribution is inherent to software development,” warning against interpretations that could treat dissemination as an intermediary function subject to regulation.
Section 604 incorporates the BRCA, clarifying that non-custodial developers who do not control user funds should not be classified as money transmitters solely because they publish or provide software tools. Section 605 adds protections for individuals’ rights to hold and transact with digital assets without mandatory use of intermediaries.
Coin Center said it remains optimistic about progress: “If enacted, the inclusion of the Blockchain Regulatory Certainty Act would represent a significant step forward in protecting developers from abusive unlicensed money transmission prosecutions, while the market structure framework would provide long-needed federal clarity for genuinely centralized actors operating in the digital asset space.” The group emphasized its ongoing advocacy efforts over nearly a decade toward these outcomes.
The bill will still need coordination with parallel work by other Senate committees before advancing further through Congress. While technical issues remain under discussion, Coin Center described overall momentum as encouraging.
