A key goal for the crypto industry—shielding software developers from legal liability for the misuse of their technology—is reportedly at risk in new U.S. Senate negotiations.
U.S. Senator Mark Warner (D-VA), known for his focus on national security, is said to have reservations about a provision in the House-approved Digital Asset Market Clarity Act. That bill would grant legal protections to developers. Warner has previously raised concerns about crypto being used for money laundering and by terrorist groups, and has pushed for stricter anti-money laundering (AML) requirements for decentralized finance (DeFi) platforms.
Despite his past skepticism, Warner has shown a willingness to work with the crypto industry. He recently supported the GENIUS Act, a bipartisan bill to regulate stablecoins, which was a major legislative victory for the sector. He stated he's open to working with Republicans on the upcoming market structure bill to address issues like illicit finance and consumer protection.
While Senator Elizabeth Warren is seen as more adversarial, many in the crypto industry view Warner as a more balanced voice, and he holds an "A" grade from the political group Stand With Crypto. However, with the Senate now preparing to debate the market structure bill, the industry is concerned that its ability to protect developers from legal risks, especially in the wake of cases like the Tornado Cash developer's conviction, may be in jeopardy.
August 2025, Cryptoniteuae