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

A deep dive into the Blockchain Regulatory Certainty Act: how it shields crypto developers from money-transmission prosecution while preserving tools to pursue cartels and money brokers.

Key Takeaways

BRCA codifies FinCEN’s non-control standard into statute (amending 18 U.S.C. 1960), protecting neutral software developers from money-transmitter charges when they lack control over funds.
Admin keys and “control” remain ambiguous: Section 301 directs rulemaking to define admin-key criteria, but quasi-trusted actors could still be regulated if they exercise discretionary control.
Conspiracy and money-laundering charges risk overreach—Tornado Cash shows prosecutors may target developers for mere knowledge; BRCA narrows 1960 liability but doesn’t change money-laundering statutes.
Policy recommendation: adopt principles-based tests, avoid binary decentralized/centralized framing, rely on existing liability tools for bad actors, and safeguard speech against prior restraint.
Enforcement focus must shift: agencies need funding, staffing, and expertise; BRCA won’t shield criminals—prioritize prosecutions of cartels, traffickers, and money brokers over tool developers.
Practical carve-outs: protect core protocol authors and non-discretionary miners/validators, and clarify when liability attaches across the publication-to-action spectrum for developer activity.

Original Source

Visit Source