Recent regulatory battles in the US Congress are worth paying attention to. The head of the Senate Judiciary Committee publicly opposed Section 604 of the "Blockchain Regulatory Certainty Act," and the main issue is here: this section aims to protect software developers from being held liable due to third-party misuse of code, but the Judiciary Committee believes that doing so would weaken federal oversight of unlicensed fund transfer activities.

What exactly is going on? The Department of Justice cited the case of Tornado Cash developer Roman Storm to emphasize the necessity of holding accountable illegal fund transfer activities under current regulations. Once this protective clause takes effect, it could limit the government's enforcement scope.

The situation is even more complicated — the committee debate scheduled for this Thursday was canceled, and the opposition voices are quite strong. If this clause is retained, it will require approval from a third committee, which could further delay the legislative process.

The attitude of the DeFi community is also quite interesting: if there is ultimately no developer protection clause, some advocates say they might withdraw support for the bill. This essentially indicates that negotiations could reach a deadlock — the Department of Justice is concerned about regulatory loopholes, while the DeFi camp fears over-penalizing developers.