The demand for legal protection for software developers operating in the field of blockchain in the United States has become one of the important agendas of the crypto industry in recent days. While the issue of supporting freedom of expression and innovation in the public interest comes to the fore in the sector, parties in this field point out that criminal investigations targeting blockchain software developers may harm America’s technology leadership in the long term.
Call to Parliament from the Industry’s Leading Group
Coin Center, which advocates for blockchain-based digital asset technologies, stated in its letter to the US Congress that people who only develop blockchain software and do not control user assets should not be considered as money transferers under current laws. Coin Center emphasized that regulatory uncertainty slows down innovation in the industry and developers are turning to outside America. The group evaluated that treating software developers as money intermediaries threatens the growth of the blockchain industry.
Blockchain Regulatory Certainty Act is on the Agenda
Discussions center on a bill called the Blockchain Regulatory Certainty Act, which was introduced several years ago and was recently updated. This regulation stipulates that software developers and infrastructure providers that do not directly hold user funds will not be considered as money transmitters. Supporters of the proposal argue that blockchain development should receive similar legal treatment as internet infrastructure services. Existing internet infrastructure services or communication channels are not subject to criminal liability due to the behavior of users.
Coin Center’s move comes amid growing concerns about federal lawsuits against crypto privacy software and decentralized platforms. Recent criminal proceedings against developers associated with anonymizing software and digital wallet applications have raised concerns throughout the industry that the software code itself may be under threat of fines.
Legal Limits on Developers and the Future of the Industry
Industry representatives who criticize litigation processes think that a distinction should be made between developing software and directly benefiting from illegal activity. They argue that US law should draw a clear distinction between developers who produce neutral software infrastructure and those who manage customer assets or engage in illegal transactions.
The bill is currently being considered as integrated into the broader legal framework for the overall regulation of the crypto market in the United States. Politicians are looking for solutions on how decentralized technologies can comply with current financial legislation.
Coin Center’s policy team reminded that there is a need for clear definitions for the new generation of blockchain developers, and that names such as Satoshi Nakamoto, Vitalik Buterin and Hayden Adams in the past may also step back due to legal uncertainty.
In the ongoing large-scale regulatory discussions in the crypto ecosystem, the legal status of software developers seems likely to be one of the main topics in the coming period.
