DEX in the City: Is Now the 'Perfect Time to Launch a Crypto Scam'?

Peter von Volkenberg of Coin Center explains the Blockchain Regulatory Certainty Act, developer protections, and prosecution risks under §1960—what builders must know now.

Key Takeaways

Coin Center defends open-source developers: civil-liberties approach supports regulating centralized actors but opposes licensing or permissioning neutral software development.
BRCA clarifies “noncontrolling” status: limited admin keys for discrete contract fixes likely won’t create money-transmitter liability; rulemaking will define control factors.
18 U.S.C. §1960 prosecutions (Tornado Cash, Samurai Wallet) create legal risk; Coin Center is funding litigation to secure narrow statutory clarity and protect developers like Michael Lewellen.
Ambiguous liability could criminalize routine maintenance, upgrades, or security practices—raising First Amendment and prior-restraint concerns for decentralized software authors.
Nondecentralized designation can trigger BSA, broker-dealer, or CFTC obligations; projects should monitor Senate rulemaking and advocate for precise, principles-based standards.
Policy must prioritize prosecuting cartels and traffickers and fully fund FinCEN/DOJ/CFTC staff rather than reallocating resources to pursue tool developers.
Coinbase Super Bowl ad reignited reputational issues: guests argue crypto must demonstrate real consumer protections and financial utility to regain public trust.

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