"For months now, the headlines have fixated on a genuine but ultimately tractable disagreement: whether crypto platforms should be allowed to share yield from their Treasury bill reserves with stablecoin holders, or whether that practice should be restricted to protect traditional banks from competition for consumer deposits. It's a real fight. The American Bankers Association has mobilized their entire lobbying arsenal against it. Coinbase has made it a red line. Senate negotiators have spent months trying to thread the needle. And they'll probably figure it out eventually."
"But while bank lobbyists and the media obsess over who exactly will get the privilege of pocketing stablecoin interest, Congress is getting dangerously close to gutting the single provision that will determine whether market structure actually delivers on its promise - or ends up crippling the very industry it claims to support. That provision - Section 604 of the current Senate draft - has to do with developer protections and whether those who write non-custodial software can be held liable by the USG as bona-fide money transmitters. Whether this section survives the Senate negotiation process intact will determine the fate of the entire bill."
"This provision isn't a technical footnote. It's not some abstract philosophical debate. It is the load-bearing wall that supports the entire policy objective of this bill. And right now, it's cracking. The BRCA Is the Whole Ballgame The Blockchain Regulatory Certainty Act, or BRCA, is a narrowly tailored provision with bipartisan origins. Introduced by Senators Cynthia Lummis (R-Wyoming) and Ron Wyden (D-Oregon), it does one essential thing: it clarifies that softwa"
A dispute over whether crypto platforms can share stablecoin yield from Treasury reserves has dominated headlines, but it is not the main risk to comprehensive market-structure legislation. Congress is nearing changes that could undermine the key provision determining whether the bill achieves its goals or harms the industry. Section 604 in the Senate draft concerns developer protections and whether non-custodial software developers can be held liable by the US government as bona-fide money transmitters. The survival of this provision is portrayed as decisive for the bill’s fate. The Blockchain Regulatory Certainty Act (BRCA) is presented as a narrowly tailored, bipartisan measure introduced by Senators Cynthia Lummis and Ron Wyden to clarify liability for developers of non-custodial software.
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