Coin Center Points Out BRCA Revision Does Not Protect Developers from Criminal Liability

Coin Center stated that the latest revision of the BRCA text removed the provisions that provided clear criminal liability protection for developers who do not control user funds. The revised text still protects developers who do not control user funds, making it easier to prosecute for not obtaining a money transmitter license or failing to register with the federal government. However, the text does not prevent prosecutors from claiming that developers knowingly transmitted funds derived from criminal activities, a theory that has become the core basis for the criminal cases against Tornado Cash developer Roman Storm and Samourai Wallet developers. Coin Center believes that this compromise represents a substantial regulatory advancement, but developers still face broader criminal liability theories from the U.S. Department of Justice regarding money transmission; if the CLARITY Act is passed according to the revised BRCA, the related disputes will primarily shift to the courts.

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