A recent regulatory showdown in the US Congress is worth paying attention to. The head of the Senate Judiciary Committee publicly opposed Section 604 of the "Blockchain Regulatory Certainty Act," with the main issue being: this section aims to protect software developers from being held liable due to third-party misuse of their code, but the Judiciary Committee believes this would weaken federal oversight of unlicensed money 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 current regulations in holding illegal fund transfer activities accountable. If 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 is quite strong. If the clause is retained, it will require approval from a third committee, making the legislative process more sluggish.

The attitude of the DeFi community is also quite interesting: if the developer protection clause is ultimately not included, some advocates say they might withdraw support for the bill. This essentially signals that negotiations could reach a deadlock— the Department of Justice is concerned about regulatory loopholes, while the DeFi camp fears over-penalizing developers.