cryptolegalization

Senate Judiciary Committee leaders Chuck Grassley (R-Iowa) and Dick Durbin (D-Ill.) have recently pushed back against a sweeping crypto market structure bill, specifically targeting provisions meant to protect noncustodial software developers.
​As of January 16, 2026, this friction has become a major hurdle for the legislation's progress. Here is the breakdown of why this is happening and what it means for the crypto industry.
​The Core Conflict: Jurisdictional Disputes
​The primary reason for the pushback isn't necessarily a hatred for developers, but a procedural power struggle.
​The "Banking" Bill: The Senate Banking Committee released a 270-page draft that included the Blockchain Regulatory Certainty Act (BRCA).
​The Judiciary’s Grievance: Grassley and Durbin argue that the Banking Committee overstepped its bounds. Because the bill involves changes to Title 18 (the federal criminal code), the Judiciary Committee claims jurisdiction.
​Lack of Consultation: In a letter released on Friday, the leaders stated they were not given the opportunity to "meaningfully review" the changes before the bill was sent for a planned markup.
​What the BRCA Aims to Do
​The specific part of the bill being contested—the Blockchain Regulatory Certainty Act—is highly favored by the crypto industry. It seeks to clarify that:
​Developers are not "Banks": Noncustodial software developers, miners, and validators who do not control user funds should not be classified as "money transmitters."
​Exemptions: It would create clear legal guardrails to ensure that simply writing code or maintaining a network does not subject a person to the same burdensome regulations as a centralized exchange like Coinbase.
​Broader Industry Tension
​The Judiciary Committee's intervention adds to a growing list of problems for the bill:
​Exchange Opposition: Coinbase CEO Brian Armstrong recently stated the exchange cannot support the bill as written, citing concerns over "tokenized equities" and provisions that could "kill rewards on stablecoins."
​DeFi Uncertainty: Industry insiders have "baulked" at new disclosure requirements for decentralized finance (DeFi) and a new test to determine if a project is "sufficiently decentralized."
​Bipartisan Pressure: While Sens. Cynthia Lummis and Ron Wyden are championing the developer protections as a standalone bill to ensure they aren't lost, the Judiciary Committee’s stance puts the broader package in jeopardy.
​What’s Next?
​The Senate Banking Committee must now decide whether to amend the bill to satisfy the Judiciary leaders or risk a floor fight that could stall crypto regulation for the remainder of 2026.
​Key takeaway: The pushback is less about the merit of protecting developers and more about who gets to write the criminal laws governing them.
#CryptoLegalization
#BRCA
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