The protection of developers in the U.S. Senate cryptocurrency bill faces joint opposition from law enforcement agencies.

According to Politico, a cryptocurrency bill pushed by Tim Scott, chairman of the U.S. Senate Banking Committee, is facing a split of interests between law enforcement agencies and the crypto industry. The dispute centers on a provision in the bill protecting “non-custodial software developers,” which states that developers who do not control customer funds do not need to register as money transmitters and do not have to comply with anti-money-laundering compliance requirements. Multiple organizations, including the National Sheriffs’ Association and the National District Attorneys Association (NDAA), have pressured lawmakers through letters, arguing that the provision would create regulatory gaps and weaken law enforcement’s ability to track financial crimes. Meanwhile, industry groups represented by the DeFi Education Fund and Senator Cynthia Lummis argue that writing code is protected by the Constitution and that developers who have never controlled funds should not be treated as money transmitters.