U.S. Senate Judiciary Committee Expresses Concerns Over DeFi Provisions in Cryptocurrency Market Structure Bill, Impact on Deliberations Possible

Senators Chuck Grassley and Dick Durbin of the U.S. Senate Judiciary Committee have expressed concerns in a letter addressed to Tim Scott, the Chairman of the Senate Banking Committee, and Senator Elizabeth Warren, regarding the inclusion of the Blockchain Regulatory Certainty Act (BRCA) in the bill. According to reports, both senators argued that the draft of the Senate version of the bill should have been discussed before its release on Monday night.

The BRCA aims to clarify that non-custodial software developers (such as DeFi developers) who do not manage user funds are not considered money transmitters, and it sets conditions under which developers and service providers are exempt from money transmission laws.